17 December 2010
Mr. X obtains loan from bank Rs. 500000 and starts business. Then in the balance sheet will the loan obtained be shown as Capital as on first day Rs. 5 lakhs and Secured loan Rs. 5 lakhs? Please tell me..
18 December 2010
First of all, he cannot show the loan, both as a capital introduction and as well as Secured Loan..
Either of the case can happen..
If he takes a personal loan... he can show the same as Capital Introduction. But, if its a business loan, the same will become Secured/Unsecured Loan in the books of business
CAclubindia
