Common questions about loan accounting
Review dated balances, payment components and new borrowing separately.
On this page
Have the lender statement, payment date and reference. Identify whether the difference concerns principal, interest, escrow or fees.
Compare the same date
Review the loan’s statement principal balance and balance-as-of date before comparing with a lender statement or report. A tracker balance and a ledger opening balance are separate records.
Use actual payment components
For each loan payment review principal, interest, lender escrow and additional principal. The components must equal the total; separate a fee or other event through the appropriate reviewed entry.
Review a new loan separately
For refinancing or a line of credit, keep the closing or lender statement and review the new debt, old debt, cash proceeds and any opening journal with your preparer. Do not book all proceeds as rent revenue.
Check the result
- The dated loan tracker, opening journal and posted payment components can be checked separately.
FAQs
Why can the tracker and balance sheet differ?
Compare dates and review the ledger opening journal and subsequent posted activity. Entering a tracker principal balance alone does not establish the ledger’s opening debt.
How should I handle an interest-only or extra-principal payment?
Use the actual statement breakdown. Do not force a standard amortization suggestion onto a payment with different components.
Can one payment cover several properties?
Review the loan’s actual property or portfolio scope and the supported allocation. Do not duplicate the full payment under each property.
Does a loan payment record send money to the lender?
No. Record the actual payment after checking its source. Bank transfer and bookkeeping have separate results.