The balance of loan principal refers to the balance of loan principal at a certain point in time, that is, the total amount of loan principal that has been paid but not yet repaid. In short, it is the total principal that the borrower should repay at present.

The general loan principal balance will gradually decrease with each repayment until it is fully paid off. When calculating the loan interest and repayment plan, the loan principal balance is a very important reference index, which can be used to calculate various expenses, interest and principal repayment and other related information.

It should be noted that the loan principal balance does not include interest and other due fees, and is only used to reflect the current amount of the loan with outstanding principal. In addition, the loan principal balance is also affected by factors such as loan interest rate, repayment method and loan term.

How to make accounting entries for repayment of loan principal?

1, repayment of short-term loan principal:

Borrow: short-term loans

Interest owed

Financial expenses-interest expenses,

Loan: bank deposit.

2. Repaying the principal of long-term loans:

Borrow: long-term loan-principal,

Loans: bank deposits

Long-term loan-interest adjustment.