16.9 Accounting Entries for Non-Performing Loans

The following entries are applicable when interest payment is done for non-performing loans

Table 16-85 LIQD: Interest Payment

Account	Amount	Dr/Cr Indicator
CUSTOMER	INTEREST	Dr
RECEIVABLE	INTEREST	Cr

Table 16-86 ACCR: Memo To Real Movement

Account	Amount	Dr/Cr Indicator
MEMO INCOME	INTEREST	Dr
MEMO RECEIVABLE	INTEREST	Cr
RECEIVABLE	INTEREST	DR
INCOME	INTEREST	CR

Table 16-87 CICR: Contra Increase

Account	Amount	Dr/Cr Indicator
INCOME	INTEREST	Dr
CONTRA	INTEREST	Cr

The following entries are passed when interest payment for non-performing loans is reversed

Table 16-88 REVP: Interest Payment Reversal

Account	Amount	Dr/Cr Indicator
RECEIVABLE	INTEREST	Dr
CUSTOMER	INTEREST	Cr

Table 16-89 ACCR: Memo To Real Movement

Account	Amount	Dr/Cr Indicator
MEMO RECEIVABLE	INTEREST	Dr
MEMO INCOME	INTEREST	Cr
INCOME	INTEREST	DR
RECEIVABLE	INTEREST	CR

Table 16-90 CICR: Contra Increase

Account	Amount	Dr/Cr Indicator
CONTRA	INTEREST	Dr
INCOME	INTEREST	Cr

The following are the entries for interest payment for non-performing loans which are partially or fully reserved

Table 16-91 LIQD: Interest Payment

Account	Amount	Dr/Cr Indicator
CUSTOMER	INTEREST	Dr
RECEIVABLE	INTEREST	Cr

Table 16-92 ACCR: Memo To Real Movement

Account	Amount	Dr/Cr Indicator
MEMO INCOME	INTEREST	Dr
MEMO RECEIVABLE	INTEREST	Cr
RECEIVABLE	INTEREST	DR
INCOME	INTEREST	CR

Table 16-93 CICR: Contra Increase

Account	Amount	Dr/Cr Indicator
INCOME	INTEREST	Dr
CONTRA	INTEREST	Cr

Table 16-94 FRSV: FAS114 Reserve Decrease

Account	Amount	Dr/Cr Indicator
FAS114 FUNDED RESERVE	Least of (Reserve Decrease Amt, Existing FAS 114 Reserve)	Dr
FAS114 FUNDED RELEASE	Least of (Reserve Decrease Amt, Existing FAS 114 Reserve)	Cr

Table 16-95 RESR: Reserve Decrease

Account	Amount	Dr/Cr Indicator
RESERVE	Least of (Residual of Reserve Decrease Amt after FRSV, Existing Reserve)	Dr
RECOVERY	Least of (Residual of Reserve Decrease Amt after FRSV, Existing Reserve)	Cr