Page 43 - MAZOO EBOOK 1_Neat
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If we use year one as an example, the beginning loan principal balance is 500, the interest added


                       to the account is calculated as 500 x 6% = 30, and the repayment deducted is 187.05.


                       As the interest is 30, then the principal repayment is 157.05 (187.05-30.00), and the ending

                       balance of 342.95 represents the outstanding principal balance on the loan.



                       Double Entry





















                       Prepaid income and accrued expenses

                       Prepaid income is revenue received in advance but which is not yet earned.












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