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What else can I help you with?
Who generally benefits from a loan transaction?
The Borrower
What can be used as collateral for a loan or financial transaction?
Assets such as real estate, vehicles, jewelry, stocks, or savings accounts can be used as collateral for a loan or financial transaction.
How much money does a mortgage loan broker earn?
They usually earn anywhere from 35%-75% of each loan transaction. In dollar amount you can potentially make anywhere from $1,500 up to $5,000 for each loan transaction.
Can a guarantor get their money back from someone who has defaulted on their loan?
No. All the guarantor does in a transaction is guarantee that the loan will be paid. They don't get any money back. In fact, they are fully responsible for paying the loan if the primary borrower defaults.No. All the guarantor does in a transaction is guarantee that the loan will be paid. They don't get any money back. In fact, they are fully responsible for paying the loan if the primary borrower defaults.No. All the guarantor does in a transaction is guarantee that the loan will be paid. They don't get any money back. In fact, they are fully responsible for paying the loan if the primary borrower defaults.No. All the guarantor does in a transaction is guarantee that the loan will be paid. They don't get any money back. In fact, they are fully responsible for paying the loan if the primary borrower defaults.
What does it mean to close on a mortgage loan?
That means the mortgagors meet with the lender's attorney and sign all the documents, the transaction is completed and the mortgage is recorded in the land records. It's a done deal.That means the mortgagors meet with the lender's attorney and sign all the documents, the transaction is completed and the mortgage is recorded in the land records. It's a done deal.That means the mortgagors meet with the lender's attorney and sign all the documents, the transaction is completed and the mortgage is recorded in the land records. It's a done deal.That means the mortgagors meet with the lender's attorney and sign all the documents, the transaction is completed and the mortgage is recorded in the land records. It's a done deal.
What would be the accounting journal entries for 45000 loan at 9 interest for ninety days?
Debit cash / bank 45000Credit loan account 45000
Double entries for settlement of hire purchase loan?
In a hire purchase agreement, the settlement of the loan involves two key entries in the accounting records. First, when a payment is made, a debit entry is recorded to the hire purchase liability account to reduce the outstanding loan balance. Simultaneously, a credit entry is made to cash or bank to reflect the outflow of funds. Additionally, if there are interest charges, these would also be recorded as an expense, creating another debit entry to the interest expense account.
How do you record loan using cash basis accounting?
When the money for the loan is received it is recorded as cash. Payments are not recorded until the actual payments are sent out. This will be recorded as a debit to a loan expense account and credited directly to cash. The interest is debited directly to an interest expense account and credited directly to cash for the same payment. A compound entry can be used for this purpose. There is no loan payable or interest payable accounts for cash basis accounting.
What is the Journal entry for purchase of asset with proceeds of bank loan?
If you borrow the money and the bank pays the amount directly to the company (or person) in which you are buying the asset the from, depending on the asset the following entries will be made Debit the related asset account and credit either accounts or notes payable. This transaction will NOT affect cash, as your books never see an actual transaction in the cash account. The best example I can think to show this is the purchase of a vehicle for your business. Say you purchase the vehicle for $25,000 and the bank finances this amount. Equipment - Vehicle (db) $25,000 Notes Payable (cr) $25,000 After reading the question again, I thought I should add this. Since the question is worded "proceeds of a bank loan" it implies that the company/person has already taken out the loan and has it recorded on the books. If this is the case then the cash is already received from the bank and therefore the transaction would be listed as a cash purchase. The initial recording of the loan would be a debit to cash and a credit to notes payable (note that NO interest would be recorded in the initial transaction as no interest would have accrued on the first day of the loan.) Any purchase made after this time would be recorded as a cash purchase.
What is the accounting entries for purchasing a car on installment basis?
Credit to Liabilities for the amount of the loan. Credit to liabilitites for the amount of interest on the amount of the loan.(this can be entered monthly to keep better track of) Debit to cash for the amount of the payment made. (this amount should be equal after the payments are completed to the addition of the loan amount and interest.)
Who generally benefits from a loan transaction?
The Borrower
What can be used as collateral for a loan or financial transaction?
Assets such as real estate, vehicles, jewelry, stocks, or savings accounts can be used as collateral for a loan or financial transaction.
How do you record a bank loan in accounting?
Debit cash / bankCredit loan from bank
How much money does a mortgage loan broker earn?
They usually earn anywhere from 35%-75% of each loan transaction. In dollar amount you can potentially make anywhere from $1,500 up to $5,000 for each loan transaction.
What is the accounting entry for booking cash received as a loan?
Debit Cash; Credit Loan Payable
How will you record bank loan in tally accounting?
Debit bank a/c Credit loan a/c
Can a guarantor get their money back from someone who has defaulted on their loan?
No. All the guarantor does in a transaction is guarantee that the loan will be paid. They don't get any money back. In fact, they are fully responsible for paying the loan if the primary borrower defaults.No. All the guarantor does in a transaction is guarantee that the loan will be paid. They don't get any money back. In fact, they are fully responsible for paying the loan if the primary borrower defaults.No. All the guarantor does in a transaction is guarantee that the loan will be paid. They don't get any money back. In fact, they are fully responsible for paying the loan if the primary borrower defaults.No. All the guarantor does in a transaction is guarantee that the loan will be paid. They don't get any money back. In fact, they are fully responsible for paying the loan if the primary borrower defaults.
