24 May 2012
Respected Experts ! We purchased a Property for Rs.14400000/- and loan was taken from Bank. Property transferred to Partners Account and the Interest charged by bank was debited to partners account. As the loan amount is being used by the partners , we want to debit the principle amount to partners account. What entry should we pass for the same purpose
We passed the entries
Property account Dr. To Bank Loan Account
Partners Account Dr. To Property Account
Interest on Loan A/c Dr. To Bank Loan Account
Partners Account Dr. To Inrerest on Loan Account
Bank Loan Account Dr. To Bank Account
How can we charge the principle amount to capital accounts? Please guide me !
24 May 2012
Like interest on loan.. similarly you shall require to transfer the bank loan account to the capital account of the partner. It shall then be reflected in the personal statement of affairs of the partner.
25 May 2012
When we transfered the intt to capital then we credit the intt and debit the capital. But in this case if we debit the capital and credit bank the bank loan account remain unchanged.
25 May 2012
When we transfered the intt to capital then we credit the intt and debit the capital. But in this case if we debit the capital and credit bank the bank loan account remain unchanged.
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