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1st when you receive the fund-
Bank A/c (Dr.) Asset
To Secure/ Unsecured Loan (Cr.) Liablity
When you release60 PC to the bank-
Prepaid Loan Term Loan (Dr.) Asset
TO PDC issued (Cr.) Liability
When the cheque is realized for each month on the realization date you will pass
PDC issued (Dr.) Liablity
To Bank (Cr. ) Asset
Every month you will pass a JV
Secured/ Unsecured loan (Dr.)
Interest on Loan (Dr.) Expenses
To Prepaid Loan Term Loan
i want to apply for this loan tell me what is the procedure.
[ Entry when you get the Loan]
Bank A/C Dr
Loand A/C Cr
Assets- Bank A/C
Liabilities- Loan A/C
[Entry when you start paying EMI]
Loan A/C Dr.
Bank A/C Cr.
