Banking

Interest Income Accrual — Performing Loan

Accruing monthly interest on a current (Stage 1) loan that is paying on time.

Account NameTypeDebit ($)Credit ($)
Accrued Interest Receivable (Loans)Asset (+)8,333.00-
Interest Income (Loans & Advances)Revenue (+)-8,333.00

💡 Accountant's Note

Interest on performing loans is recognized on the accrual basis. A JOD 1,000,000 loan at 10% p.a. earns JOD 8,333/month of interest income regardless of when the customer actually pays.

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Expert Analysis by Qusai Ahmad

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