27 September 2011
UNDER THE MAHA. COOPERARIVE SOCEITY ACT,1960,URBAN COOP BANK HAS POWERS TO ACQUIRE THE IMMOVALE PROPERIES OF THE BORROWER IN SATISFACTION HIS LOAN. BORROWER HAS OVERDUE LOAN OF RS.46LAKHS.THE BANK ACQUIRED THE IMMOVABLE PROERTY OF THE BORROWER BY EXECUTING REGISTERED SALE DEED FOR RS.42LAKHS.NOW HOW TO ACCONT THESE ENTRIES.AS A REGULAR ENTRY FOLLOWING RENTRIES ARE EXPECTED.= DR.NON-BANKING ASSET FOR RS.42 LAKHS CR.LOAN A/C FOR RS.42 LAKHS DR.INTEREST REMISION A/C RS.04 LAKHS CR.LOAN ACCOUNT (AMT REMITED) RS.4 LAKHS. WHETHER THIS IS CORRECT METHOD?IF NOT PL.ELABORATE.(THE LOAN ACCONT WILL BE CLOSED AND NEW A/C NON BKG ASSET WILL BE SHOWN ON THE ASSET SIDE).RESULT WILL BE LOSING OF ASSET FOR THE BORROWER AND ACQUISITION OF NEW ASSET BY BANK.
28 September 2011
Teh entries which are passed by the bank are correct and 100 % right as bank has aquired the asset, it should appears in the books at the cost which it realised
28 September 2011
The book value appearing in the land should be credited. If the land is appearing at 25 lakh then 25 lakh will be credited, rest 19 lakh will be profit on sale of land
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