CAN ANY ONE ADD THE NUMBERS TO THIS TRANSACTION RECORD EXAMPLE?

In this process, clients submit securities to the bank as security for the advance (Loan), and the bank decides to give these clients a percentage of the face value of the accepted securities. The entries are:

1- When the bank receives the securities presented as security, the entry will be:

XX Dr Securities to guarantee an advance..

XX Cr holders of Securities to guarantee an advance

(Regulatory entry that proves the bank's receipt of the accepted Securities only)

-2When customers withdraw the advance (Loan) or part of it:

XX Dr Advance secured by securities

0 Cr Cash (in case of cash advance) or,

XX Cr Current account (put the amount in his current Acc)

3- At the end of each periodic period, the bank calculates the interest due on the advance (Loan), and the following entry is made for it:

XX Dr Advance secured by securities....

XX Cr credit interest (revenue to the bank).

(added the accrued interest to the advances/Loan)

-4When customers pay the advance (Loan), or part of it, the entries are as follows:

1. Proof of payment of the advance (reverse of the entry of withdrawing the advance)

XX Dr Cash (in case of paying the advance in cash) or,

XX Dr Current account (if paid from the current account)

XX Cr Advance secured by securities

2. The statutory entry shall be cancelled, or part of it (depended on the payment, whether the customers pay the whole amount of advance or part of it)

XX Dr holders of Securities to guarantee an advance

XX Cr Securities to guarantee an advance..

Notes: 1- A customer may default on paying the value of the advance on the agreed date. In this case, the bank sells the securities presented as security by brokers and deducts from their selling value the total debit balance owed by the customer (the advance and interest) and from their selling value the brokers commission and commission of the bank. The difference, if any, is added to the current account, and the entry is:

XX Dr brokers securities (sale value - brokerage commission)

XX Cr Advance secured by securities (the value of the advance + interest)

XX Cr commission for selling securities (revenue for the bank) ..

XX Cr current accounts (difference).

(Proof of execution of the sale)

Then the statutory entry is cancelled at the nominal value of the sold securities:

XX Dr holders of Securities to guarantee an advance.

XX Cr Securities to guarantee an advance..