Banking

Personal Loan — Monthly Installment Collected

Collecting a scheduled monthly installment on an unsecured personal loan.

Account NameTypeDebit ($)Credit ($)
Customer Account (Debit)Liability (-)450.00-
Personal Loans (Principal Reduction)Asset (-)-200.00
Accrued Interest Receivable (Cleared)Asset (-)-250.00

💡 Accountant's Note

Personal loan collections reduce the outstanding principal and clear accrued interest. If a payment is missed, the overdue amount flows into the NPL classification and staging process.

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