Recording Interest expense and installment notes tutorial
I just saw the module on how to create a loan account in Zoho.
However the repayment instructions does not address the interest paid in the note repayment. Say for example that you borrow $1,500 with a promisory note to be paid monthly for 6 months at 3%. ow do you account or record the interest expense and installment notes?
I can see doing the following for this example fixed payments of $252.19 - every month the interest will vary - but lets look at month 1:
Interest Expense $3.75 ans Installment notes $248.44
So how do we do that in Zoho? I have already followed the instructions on creating an Other Liability account "Loan", and recorded the loan per the instructions