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Loan repayment will reduce the amount of loan liability from liability side of balance sheet as well as reduce the cash or bank account as the payment is made through bank or cash.
General entry is as follows
[Debit] Long-term loan xxxx
[Credit] cash / bank xxxx
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∙ 10y ago
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Is Loan on balance sheet or off balance sheet?
Loan is on balance sheet
Principal accounts on a bank's balance sheet?
Loan account is the most important account in the bank's Balance sheet.
What does a negative credit balance mean on home loan statement?
Excess of repayment over scheduled or expected repayment. For eg. the expected balance in a HL account on a given date is 10,000/-, the actual account balance should have been 8,000/- as per the repayments made, the excess repayment of 2,000/- is negative credit balance or unadjusted repayment.
In regulation U what is the meaning of carrying a loan?
The lender is "carrying" the loan on its Balance Sheet
Are loan commitments an off balance sheet items?
yes
Monthly cost of paying off college loan?
Depends on the balance, repayment term, and interest rate.
Where will be the balance and deposit with excise authorities in balance sheet?
It is posted in long term loan and adv.
Is a co-buyer responsible for paying off a loan if the buyer has no job and the vehicle was repossessed?
Yes, he or she would be equally responsible for the repayment of the loan balance.
Do you add a loan to cash on balance sheet?
Cash is added as asset and amount of loan is recored as a liability.
What is the journal entry of transferring unsecured loan to balance sheet?
Debit cash / bankCredit unsecured loan
What is the repayment period of a foreign loan called?
repayment period of foreign loan
Difference between loan payable and loan receivable?
loans payable apear under liability on the balance sheet.
