EMI payment

Recording An EMI Payment

When a term loan or an Asset loan is repaid in Equated Monthly Instalments, The payment includes both Principal and Interest repayments. We will have to calculate the Interest component in the EMI and record it as an Expense. The loan account has to be reduced to the extent of the principal component.

Let Me Now Show You How Its Done.

1.Go to Journal under account tab.
2.Add Journal Button.

3.Now add Description.
4.Then Select date.
5.You can add the details of the new ledger by clicking on the “+” button near the account field.

6.Select current liability group
7.Then Add ledger name.
8.Now Click Create.

9.Now select Loan ledger and add amount under Credit column
10.Select bank and add amount under debit column.
11.Now Click Save.

12.Select ledger (Loan from Bajaj) and add amount under debit column.
13.Then select Interest on loan and add amount under debit column.
14.Select bank and add amount under Credit column.
15.Now Click Save.