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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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