Query regarding loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 June 2013 if a person does not have an a/c with bank say central bank but he is taking loan from that bank then what will be the journal entry for that?will it be
bank a/c dr
to loan taken

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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05 June 2013 How the loan disbursement happened, whether cash or cheque. incase cheque you need to open the bank a/c and deposit for clearance the entry will be

Dr: Bank Cr: Loan a/c

incase cash disbursement

Dr:Cash Cr: Loan a/c

but no bank will disburse the loan amount as cash