Loan to employee
This query is : Resolved
27 June 2009
Dear All,
Let A is an employee getting 30,000 pm as Gross Salary.
Other deductions are PF 1000, PT 200, TDS 1500 out of the gross salary.
Now the employee wants a loan from company for Rs. 60,000 which ll be recovered from him in 12 installments as 5,000x12=Rs. 60,000. Let say for that loan interest is flat 500 per month for the 12 installments.
Then please tell me how should be the entries made so that the principal payment and interest on it can be reflected.
Let A is an employee getting 30,000 pm as Gross Salary.
Other deductions are PF 1000, PT 200, TDS 1500 out of the gross salary.
Now the employee wants a loan from company for Rs. 60,000 which ll be recovered from him in 12 installments as 5,000x12=Rs. 60,000. Let say for that loan interest is flat 500 per month for the 12 installments.
Then please tell me how should be the entries made so that the principal payment and interest on it can be reflected.
27 June 2009
In your books of account, debit loan a/c by Rs.60000/- and when it will be recovered then credit loan a/c with princial amount and credit interest a/c with interest amount. Pls note that if interest will be charged less 13% then difference amount of interest will be included in employees income
27 June 2009
1. On Release of Loan:
Loan A/c - Debit 60000
To Bank 60000
2. To Charge Interest on Loan:
Loan A/c - Debit 500
To Interest on Loan 500
3. To Transfer Interest to P & L A/c:
Interest on Loan - Debit 500
To P & L A/c 500
4. On Receipt on Monthly Instalment with Interest:
Bank A/c - Debit 5500
To Loan A/c 5500
Loan A/c - Debit 60000
To Bank 60000
2. To Charge Interest on Loan:
Loan A/c - Debit 500
To Interest on Loan 500
3. To Transfer Interest to P & L A/c:
Interest on Loan - Debit 500
To P & L A/c 500
4. On Receipt on Monthly Instalment with Interest:
Bank A/c - Debit 5500
To Loan A/c 5500
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- GST ON EXPORT COMMISSION
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Sale of property furniture sale
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- Stock difference tax applicable on composite rate or normal rate
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
