Interested to Buy Any Domain ? << Click Here >> for more details...
Answer Posted / 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 |
Post New Answer View All Answers
how can we get a leaverage in intraday market if are not a professional acount holder?
hi every one i just want to know the entry for bank charges dt 31.3.2016 which deducted on 02.04.2016 kindly help me thank you raj
What is tds and how it is calculated?
what are the disadvantages of back-flush accounting?
Explain which accounting application you prefer most and why?
we have received amount from others through debit/ credit cards. what is the ledger group of this? i am confused selecting the ledger group could you explain.
Sir how the enter of GST adjust of sales return
What is journal entry for salary paid less deductions (e.g. fines for breaking a company's property)?
what is the journal entry for gas connection taken by company for preparing tea and coffee.
What is the difference between the accrual accounting and cash accounting?
How to create a liability for Service Tax in SAP
What are the differences between accounting and auditing?
How new/innavtive assets are to be treated under IFRS?
What is Debit Note and Credit Note? Subsidory Books? Minority Interest? Stock recording in P&L? Outstanding Expenses, Prepaid Expenses and Examples?
What is invoice processing can u explain it?
