What would you like to do?
What is the balance on a loan?
Yes, of course. The lender forecloses on the dishonored promise to pay, takes possession of the home, auctions it to the public, and you still owe whatever amount they were no…t able to obtain at the auction to satisfy your loan obligation. If the home has more equity in it than you owe, then the extra proceeds of the auction will go back to you, but you'll need a new home, unless you won the auction.
In MOST cases, you are responsible for the BALANCE DUE. Read the contract you signed to find out more on it. It is NOT something you want to forget about. lenders do get judgm…ents for the balance and do collect them. Your responsible to pay back the loan, plus all accumulated interest, fees, costs of collection, etc., as that was all provided to you as terms of your getting the credit and loan you asked for. If the property is recovered, after all the additional costs of doing so, doesn't pay the amount provides less than the payoff, the rest is still entirely due and owed by you. It is just no longer secured by the property. Any excess amounts are returned to you. In bankruptcy you may have a different result, with the excess debt being possibly discharged.
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
Simply put, this means someone uses too much of their available credit. Here is an example: Person A has $1000 in credit card debt (4 open cards) spread out like th…is: AMEX: $200 balance with a $5000 limit, VISA:$500 balance with $5000 limit, DISCOVER: $300 balance with $5000 limit, MASTERCARD: $0 balance with $5000 limit. Person B has the same $1000 in debt but spread like this: AMEX: $200 balance with a $300 limit, VISA $200 balance with $200 limit, DISCOVER: $500 balance with a $500 limit, MASTERCARD: $100 balance with a $200 limit. Person B, despite having the same overall debt level will have a lower credit score than person A because they are using more of what is available to them. A good credit score means you use credit sparingly and don't show signs of relying on credit to manage your finances
INTEREST ON LOAN NEVER GOES TO THE BALANCE SHEET AS IT IS A REVENUE EXPENDITURE. IT WILL SHOWN AS AN EXPENSE FOR THE FINANCIAL YEAR AND DEBITED IN PROFIT AND LOSS ACCOUNT BEFO…RE ARRIVING AT NET PROFIT. MOHAMMED ASIF MUSCAT Mohammed, You are an idiot. Yes it does as interest payable. How do you pay for it? Obviously with cash. It therefore flows through the balance sheet. What state are you from so I can have them take away your cpa license. Chances are you don't have one. Joe Bob Interest paid on a loan does not go directly on the balance sheet as correctly stated by Muscat and instead is seen as a line item on the profit and loss statement. Indirectly however, paid interest is a reduction of cash (cr entry) and owners' equity (dr entry) which obviously effects the balance sheet. Unpaid accrued interest can however be seen on the balance sheet as a short-term liability. Accrued interest in the case of a term note represents interest unpaid from the last note payment to the ending date of the balance sheet. For example, if the last note payment was on 12/20/y0, the balance sheet would show 11/31th of the interest associated with the 01/20/y1 note payment in accrued interest. So... be nice; both of your answers have a component that correctly answers the question. Regards, MJG
Disbursed Loan Amount When you get a loan, sometimes the entire amount of the loan is not given out (disbursed) immediately. For instance, suppose the loan is a …home equity loan. Usually, the person receives portions of this loan as needed. Suppose the total loan available is $50,000. The person takes $10,000 of this amount. The disbursed loan balance is now $10,000. Depending on the contract, the person will receive a bill for an installment payment to reduce this amount plus interest.
\n. \n Answer \n. \n. \nyes you do so the bank or dealer wont report it to creditors.\n. \n. \n More Opinions \n. \nWhen a vehicle is repossessed it must be leg…ally sold for the fair market value, or as near as possible to that price.\n. \nThe amount obtained by the sale is applied to the remaining balance of the loan. The borrower is responsible for any deficit amount plus applicable fees.\n. \nA repossession is almost always entered on a credit report.
This specific reason does not necessarily means something negative on your credit report. For instance, you can have an active but not fully paid loan on your account. Even if… you are nearly finished with your payments, the creditor may denied an application based on that information. Keep in mind that new credit approval are based on the borrower's ability to repay the dept. Therefore the financial institution will not approve new credit if your debt its already too high and they consider you would not be able to repay along with the existing debts. However there is still hope for those who are nearly finished paying off their loans. You can contact the financial institution and ask for reconsideration, there are phone numbers you can call to speak directly to a credit analyst. Explain your situation and how you're nearly finished with your debt or you can simply wait to pay off the loan and then give it another try. Also, some college student can get this reason for denial. Because they are currently taking loans or took loans while attending school. Again contact the financial institution and ask for reconsideration. Good Luck!
The balance of a loan depends on the original contract rate, whereas the market value of the loan depends on the current market interest rate.
You reduce the value of the asset/liability you write-off against income/or expenses in the P&L after the operational result
Cash is added as asset and amount of loan is recored as a liability.
The answer depends on when interest is calculated, how frequently payments are made, the interest rate being charged and the life time of the loan. There are a number of… "interest calculators" available on the Internet that can probably show you the answer - working out the answer from scratch means you'll need to add on the interest for each payment / interest cycle over the 12 months and then you can work out the average. If your using this to calculate your interest then an accurate calculation will depened on how your interest is calculated ie. daily monthly semi-annual, or annual. The simplist answer is take the balance of the loan at the end of each month, add them together and then divide by 12
That would be up to the lender. Of course, the executor of the estate would have to give that heir the equity in the auto.
If you were involved in a car accident and it was not your fault are you resposible for the balance of the loan?
If the other party has insurance, then their company needs to pay off the balance. you are but you can sue their insurance for the loss but the creditor will expect… you to owner the contract(the loan)
Debit cash / bank Credit unsecured loan