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difference between loans & advances
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Answer / anju
Loan is a amount on which we r charging interest but on
advance we r not charging interest or its just like a
deposit.
| Is This Answer Correct ? | 22 Yes | 1 No |
Answer / sudhansu2789@gmail.com
The main diffrence between Loan and Advance : the interest
component.
2. Both Loan and Advance are to be repaid in installments
for example: monthly installments of equal amounts.
3. In case of Loan, interest is calculated ( Simple or
Compound type interest) and the interest amount is recovered
at the end.
4. Example for Advance: Mr. X working in an organisation. He
took 10,000 as advance to be repaid in 10 monthly
installments. Monthly recovery from salary is 1,000 . After
10 months, hi repays entire amount .
5. Example for Loan: Mr. Y took a Loan of 10,000 with a a
simple interest rate of of 12% per year. Monthly installment
is 1,000. Accrued Interest is calculated every month on
balance principal amount. The recovery chart is as below.
| Is This Answer Correct ? | 5 Yes | 1 No |
Can somebody please tell that what will be the accounting entry from auditor's point of view, If a company receive a bill of Rs. 12000 for AMC of Software for the period from 01.08.2014 to 01.08.2015. bill dated 01.05.2015, Can somebody please tell that what will be the accounting entry from auditor's point of view, If a company receive a bill of Rs. 12000 for AMC of Software for the period from 01.08.2014 to 01.08.2015. bill dated 01.05.2015, what will be entry pass in 01.05.2015 in tally
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