Dictionary / Amortization Schedule
What does Amortization Schedule mean in accounting?
Quick definition
Accrual & timingA table in which computations are provided for the periodic write down until maturity of the premium paid on a bond or note. This term guides how bookkeepers record, classify, and explain related transactions in routine financial reporting.
Read more below
Examples
A surplus-cash bond bought above face
On February 6 your machine shop parks surplus cash in $25,000 face of a city's 3.5% bonds and pays $25,900. The extra $900 is a premium. The broker's amortization schedule writes that premium down $25 a month for the 36 months left to maturity. At the February 28 close, take the first line: debit Interest income $25 and credit the bond investment $25 so the carrying amount moves toward face. Post from the schedule, not from the coupon deposit in the QuickBooks Online or Xero bank feed.
A loan table is not this schedule
On June 12 your bakery finances a delivery van and the bank emails an amortization schedule for the $38,400 loan, with each payment split into interest and principal. That is not this term. An amortization schedule, here, is the table that writes down a premium already paid on a bond or note until maturity. File the loan table with the note and reduce the loan as you pay it. Do not use those rows to write down an investment you never bought above face.
Why it matters
This schedule is the table that computes the periodic write-down of a premium you already paid on a bond or note. You will not post this most months; it shows up only after you buy a bond or note above face, then at each interest date until maturity. Leave the investment at purchase price and interest income looks too high for every remaining period. A bank loan table splits a payment into principal and interest, and a bond discount purchase is below face, so neither is this schedule.
Further reading
Compare this term with reference material from other accounting and finance websites.
Keep learning
Start with the bookkeeping basics, then compare software when you are ready to pick a tool.
Getting startedBookkeeping basics for small-business ownersWhat bookkeeping is, the records you need, double-entry in plain English, and a monthly rhythm that fits a 1–50 person shop.Updated October 4, 2026
RolesWhat does a bookkeeper do?A bookkeeper records bills, invoices, and bank activity so your books stay current. See the weekly work, the month-end close, and what they do not do.Updated August 18, 2026
Monthly closeMonthly bookkeeping: what to close each monthMonth-end is the job: reconcile banks and cards, age bills and invoices, check payroll, then read the reports. A close checklist for small-business owners.Updated August 18, 2026
Expense ManagementThe 10 Best Expense Management Software for Small BusinessWe ranked the 10 best expense management tools for small business, scored on features, ease of use, and value, with honest tradeoffs for each.Updated August 8, 2026Frequently asked questions
What is Amortization Schedule in bookkeeping?
A table in which computations are provided for the periodic write down until maturity of the premium paid on a bond or note.
When should I use Amortization Schedule?
Use Amortization Schedule when the transaction facts match its definition and you need the ledger and financial statements to reflect the correct account and period.
What is a common mistake with Amortization Schedule?
Amortization Schedule is used for amortization schedule entries, while Abandonment covers a related but distinct bookkeeping purpose. Review both terms before posting unusual transactions. A common mistake is applying it by label only instead of checking the underlying transaction details.