Account for the whole amount received
If a borrower sends ₹15,000 and only ₹12,000 is allocated, the receipt still needs to account for ₹15,000. Record the allocation and identify the remaining ₹3,000 as unapplied borrower credit when appropriate.
Before applying the excess to principal, interest or another agreement, check the terms and any borrower instruction. Keep the explanation with the receipt or subsequent credit movement.
Record the next movement with its date
A later credit application reduces the held amount and applies it to the selected balance. The original cash receipt remains ₹15,000. A refund records cash leaving and reduces the held amount.
At reconciliation, check the amount originally received, the amount applied to debt and the remaining credit separately. Match any refund to its own outgoing reference.
Follow the ₹3,000 excess
| Event | Amount | Held credit afterward |
|---|---|---|
| Receive ₹15,000 and allocate ₹12,000 | ₹3,000 held | ₹3,000 |
| Apply part of the credit later | ₹2,000 applied | ₹1,000 |
| Refund the remaining credit | ₹1,000 refunded | ₹0 |
Illustrative sequence. The later application and refund have their own dates and records.