(b) The provision for amortization will ordinarily be made at the end of each quarter beginning with the date of substantial completion or the date of issue of the bonds, whichever is later. No provision for amortization shall be made prior to the date of substantial completion, even though bonds may have been issued prior to that date. Quarterly provision for the first installment of amortization shall be made by distributing the amount of the installment evenly over the period between the date of substantial completion, or the date of issue of the bonds, whichever is later, and the date the amortization is due to be paid to the bondholders. Thus, if bonds were issued December 1, 1948 and the project was declared substantially completed on January 1, 1949, the quarterly provision would commence with January, 1949, in an amount equal to three twenty- thirds of the first amortization payment which would, normally, be due on December 1, 1950. If the date of substantial completion was July 1, 1949, the quarterly provision would commence with July, 1949, at the rate of three seventeenths of the first amortizations payment, and so on. Thereafter, the quarterly provision for amortization will be three twelfths of the annual amortization payment next to be made, etc. The provision for a fractional part of a month is computed on the basis of a 30-day month, exactly as is the provision for interest on the bonds (see § 1644-3.3, supra). The entry for the quarterly provision for amortization is made at the end of each quarter, by journal voucher, as follows:

Entry (4):

Debit: Account 4717, Amortization of Indebtedness $XXX

Credit: Account 2600, Accumulated Amortization $XXX

Explanation:

To record quarterly provision for amortization on housing bond issue no. ____.