Loan

This query is : Resolved

vinod kumar (Querist)
Follow

16 February 2012 1. if a company has given a loan to any person and that person dies then what will be the treatment of that loan in the hands of the company?
2. similarly if a company has received a loan from any person and that person dies then what will be the treatment of that loan in the hands of the company?

Guest

Guest (Expert)

18 February 2012 1. Loan (Dr.) will be shown in the name of legal heirs of deceased.

2. Loan (Cr.) will be shown in the name of legal heirs of deceased.

vinod kumar

vinod kumar (Querist)
Follow

19 February 2012 but if their is no legal hier of that person....?????

Upgrade to CAclubindia Pro. Subscribe Now!

Guest

Guest (Expert)

20 February 2012 In that case, his executors/ administrators/ successors

vinod kumar

vinod kumar (Querist)
Follow

20 February 2012 thank you very much.....for help

vinod kumar

vinod kumar (Querist)
Follow

01 March 2012 but if there is no one coming forward for the loan taken by the company or loan given by the company than what will be treatment of the loan amount in the hands of the company. is it capital receipt not taxable or any thing else.

Guest

Guest (Expert)

02 March 2012 Then it will be taxable for the company.

vinod kumar

vinod kumar (Querist)
Follow

05 March 2012 loan received will be taxable but what about the loan given??? will it be reduced from the p and l or general reserve????

Upgrade to CAclubindia Pro. Subscribe Now!

Guest

Guest (Expert)

05 March 2012 IT WILL BE DEBITED TO PROFIT AND LOSS ACCOUNT.