Car Loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 August 2010 Hi
Respected Members

Can any one tell me?

i am doing tax audit of PVT. LTd. in such company car loan taken on director's name and used for business purpose.

But it is shown as loan taken from director but shown as loan taken from bank.

So what to do for adjustments?

is it right or wrong?

Thrissurkkaran Ishtan

Thrissurkkaran Ishtan (Expert)
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30 August 2010 It should be shown as a loan from the Director in the books of limited company.

If you have booked it as loan from the bank then you should reverse it by debiting the bank loan and crediting loan from director.