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Event

Debit

Credit

Disbursal

Loan Portfolio

Cash

Interest Applied

Expected Interest

Interest on loans

Fee Applied

Expected fee

Income from fees

Penalty Applied

Expected penalties

Income from Penalties

Principal repayment

Cash

Loan Portfolio

Interest repayment

Cash

Expected Interest

Principal Write off

Losses Written Off

Loan Portfolio

Fees payment

Cash

Expected fee

Penalty payment

Cash

Expected penalties

Interest write off

Losses Written Off

Expected Interest

Fee write off

Losses Written Off

Expected fee

Penalty write off

Losses Written Off

Expected penalties

 

Example:Flat Loan type

Loan Amount: $ 12000

Interest Rate: 12%

Disbursement Date: 15-10-2012

Repayment StartDate: 15-11-2012


Event: Loan Disbursement

Payment mode: Cash

Date: 15-10-2012

Account Description

Dr

Cr

Cash  Book

 

10000

Loans & Advances Short Term Loan

10000

 

 

Event: Month-end Accrued Interest Posting (Automated Journal Voucher Jobs or Process). This job posts the Accrued Interest posting to Interest Receivable control accounts on end day of every month.

Mode: Automated process or Manual process which acts as bulk Journal Voucher posting

Date: 31-10-2012

Account Description

Dr

Cr

Interest Receivables

120

 

Interest on Income

 

120

 

Event: Repayments done

Payment mode: Cash

Date: 15-11-2012

Account Description

Dr

Cr

Cash on Hand

1120

 

Loans & Advances Short Term Loan

 

1000

Interest Receivables

 

120

5         Closure Dates

Allow setting closure dates at branch level after which accounting transactions cannot be posted.

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