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Event | Sequence No | Date (dd/mm/yyyy) | Effective Date (for accounting) | Comment | Debit | Credit |
---|---|---|---|---|---|---|
Disbursal
| 1 | 7-10-2013 | 7-10-2013 | Loan Portfolio (A) | Cash (A) | |
Automated System Accrual Event | 2 | 7-11-2013
| 7-11-2013 | A Repayment is Accrued/Recognized on the day it becomes due (both Interest and Fees/Penalties associated with the Repayment shall now be accrued). The system event shall only kick in when it finds a repayment which is due for that particular day. In this scenario, it would only recognize the first repayment for this loan which is due on the 7th of November 2013. The Accrual event does not kick in if
| Receivable Interest (A) | Income from interest (I) |
Receivable Fees (A) | Income from fees (I) | |||||
Receivable Penalties (A) | Income from penalties (I) | |||||
1st Installments repayment | 3 | 7-11-2013 | 7-11-2013 | Pays Principal, interest, fees and Penalties associated with this repayment | Cash (A) | Receivable Interest (A) |
Receivable Fees (A) | ||||||
Receivable Penalties (A) | ||||||
Loan Portfolio (A) | ||||||
Prepayment for remaining Installments | 4 | 8-11-2013 | 8-11-2013 | None of remaining Repayments are due yet, so the Interest/Fees/Penalties associated with them have not yet been recognized. However, we use the same posting rules for repayments (and let accruals happen independently as per schedule) | Cash (A) | Receivable Interest (A) |
Receivable Fees (A) | ||||||
Receivable Penalties (A) | ||||||
Loan Portfolio (A) | ||||||
Delete Previous Prepayment (with sequence Number 4) | 5 | 9-11-2013 | 8-11-2013 | In case of deletion of a transaction, all accounting entries made for that transaction needs to be reversed. For deleting (or even editing) an existing transaction, accounting books for that day should not be closed | Receivable Interest (A) | Cash (A) |
Receivable Fees (A) | ||||||
Receivable Penalties (A) | ||||||
Loan Portfolio (A) | ||||||
Automated System Accrual Event | 6 | 7-12-2013 | 7-12-2013 | Identical to event 2 but recognizes the receivables for the second repayment which has become due today | ||
Write Off the rest off the Loan | 7 | 8-12-2013 | 8-12-2013 | Unlike Cash based accounting which is affected only by Principal Write-off. Accrual Based accounts should respond to the following
We should not allow a write-off before the last payment. Also, after the writeoff, we stop accruing interest/fees and Penalties
| Losses Written Off (E) | Receivables Interest (A) |
Receivable Fees (A) | ||||||
Receivable Penalties (A) | ||||||
Loan Portfolio (A) | ||||||
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