23 June 2009
what entry should we passed in our books of account,What value should we when loan is recovered.(valuation of shares when loan is recovered).it is frindly loan.
24 June 2009
See the problem in solving your query is: - 01. Its not clear whether you have given a loan against hypothecation of loan. 02. Or it is a loan given in form of shares of which company i.e. listed or otherwise.
if shares are held as investment and given to him as loan, then following entries will be provided: - 01. debit party account and credit your investment a/c when loan is recovered following entry will be journanlized: - Bank/Investment A/c debit and party a/c credit the differnce will be your income.
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