Loan Amortization schedule

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Permalink Reply by Werner Reisacher on March 6, 2010 at 1:19pm

The formulas used to calculate the monthly principle and interest payments look ok to me. I have following observations:
- The dates for Loan obtained on and "First payment on" in D 1 + D 3 need to be formatted as dates.
- Cell E 3 should probably read “Libor” and not “Kibor”
- According to Cells D1 and F 4, an amount of $ 5,099,800.00 is due as down payment immediately. I cannot see that downpayment in your spreadsheet calculation of the loan repayment cycle.
Werner Reisacher

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Permalink Reply by Yasir Bilal on March 7, 2010 at 11:55pm

hi werner,

I prepared this in view that inteest is calculated onbalance outstanding so thats why i did'nt include the down payment in table by the way is it ok? or do it causes any error in calclations? please advise

Thanks for your time

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Permalink Reply by Werner Reisacher on March 8, 2010 at 10:52am

Hi Yasir,
I appoligize, I overlooked that you are calculating the interest based on the original loan minus the downpayment. You are fine, it looks ok.
Werner Reisacher

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Permalink Reply by Yasir Bilal on March 9, 2010 at 1:29am

tanks for your time.

i have also forwarded to you a trial balance grouping by piviot table did you like that? i am asking because no reply was there from your side.

Thanks once again

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Permalink Reply by Werner Reisacher on March 9, 2010 at 5:25am

I have not seen the trial balance grouping you are referring to. Please resubmit.
Thanks
Werner Reisacher

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Permalink Reply by Yasir Bilal on March 9, 2010 at 11:34pm

hi werner
find attached is the file for your review and comments regarding is this fine especially when one is preparing the aacounts of a large company

Thanks

Attachments:

• Trial Balanace & accounts Piviot.xlsx, 23 KB

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Permalink Reply by Werner Reisacher on March 10, 2010 at 12:59pm

Hi Yasir,
Technically, your spreadsheet looks ok.
Following are my observations:
- In the USA, we show the Assets on the left side of the Balance Sheet. The Liabilities are shown on the right side.
- I am not familiar with the “imprest” positions you are reporting as both, assets and liabilities. I assume that some of these balance do have a long term character. (not payable within the next 12 months) In particular the Profit 4 the year is probably a long term liability. I suggest you look at the assets and the liabilities and split them into current and long term assets and liabilities.
- Accounts that have a zero balance are usually not listed in the balance sheet.

Werner Reisacher

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Permalink Reply by Yasir Bilal on March 10, 2010 at 11:53pm

Hi werner,

Classification of accounts can be made as desired. i was only concerned about whether this tecnique will work well especially when one is going to prpare the accounts of large industry i.e. large trial balance

thanks for your input i will take it into account as well

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