Banking
Loan Origination Fee — Monthly Amortization
Amortizing the deferred origination fee into interest income each month.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Loans & Advances (EIR Adjustment) | Asset (+) | 41.67 | - |
| Interest Income (EIR Component) | Revenue (+) | - | 41.67 |
💡 Accountant's Note
A JOD 500 fee on a 12-month loan adds JOD 41.67/month to interest income. This ensures the income statement reflects the true economic yield of the loan, not just the stated coupon rate.
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