Director and company liabilitiy
This query is : Resolved
24 January 2012
Home loan of Rs ………… sanction by bank
Three companies and three individual directors are borrowers for the above home loan which was utilize towards the purchase of flat. The relative house property (flat) stands in the name of two directors.
Bank ’s sanction letter is addressed to all the six borrowers namely three companies and three individual directors.
Q .1 How the liability is to be reflected in the balance – sheet?
In what proportion?
And whom to debit?
Q.2 Since underlying property is owned by individual directors and EMI is also paid by them, will it be in accordance with Accounting Standards and Principals, just to show contingent liability by way of note in CARO report as well as in Notes to Accounts without showing liabilities in balance sheet ?
Three companies and three individual directors are borrowers for the above home loan which was utilize towards the purchase of flat. The relative house property (flat) stands in the name of two directors.
Bank ’s sanction letter is addressed to all the six borrowers namely three companies and three individual directors.
Q .1 How the liability is to be reflected in the balance – sheet?
In what proportion?
And whom to debit?
Q.2 Since underlying property is owned by individual directors and EMI is also paid by them, will it be in accordance with Accounting Standards and Principals, just to show contingent liability by way of note in CARO report as well as in Notes to Accounts without showing liabilities in balance sheet ?
24 January 2012
1)LOAN TO DIRECTORS WOULD BE REFLECTED WITH THE PROPORTION OF THE THREE COMPANIES HOLDING IN THE LOAN AMOUNT. THIS IS BECOZ THA LOAN AHS BEEN SANCTION TO SIX HOLDERS AND THE THREE COMPANIES ARE SURELY LIABLE FOR THERE SAHRE IN CASE OF DEFAULT. THEY ARE NOT SIGNING AS A GUARANTEE IN THIS TRANSACTION THUS THERE WOULD NOT BE ANY CONTINGENT LIABILITY BUT A BANK LOAN WOULD BE SHOWN
ENTRY MUST BE
LOAN TO DIRECTOR(PROP RECD) DR....
TO BANK LOAN......
2)THE UNDERLYING PROPERTY IS OWNED AND CONTROL BY INDIVIDUAL DIRECTOR BUT THE LOAN IS WITH SIX HOLDERS. THUS THE MOMENT THE DIRECTOR PAY OF THE AMOUNT THERE WOULD BE A REVERSE ENTRY IN RESPECT OF THE INDIVIDUAL COMPANY'S SHARE..
BANK LOAN DR....
TO LOAN TO DIRECTOR (PROPORTIONATELY PAID)
ENTRY MUST BE
LOAN TO DIRECTOR(PROP RECD) DR....
TO BANK LOAN......
2)THE UNDERLYING PROPERTY IS OWNED AND CONTROL BY INDIVIDUAL DIRECTOR BUT THE LOAN IS WITH SIX HOLDERS. THUS THE MOMENT THE DIRECTOR PAY OF THE AMOUNT THERE WOULD BE A REVERSE ENTRY IN RESPECT OF THE INDIVIDUAL COMPANY'S SHARE..
BANK LOAN DR....
TO LOAN TO DIRECTOR (PROPORTIONATELY PAID)
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?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- TDS U/S. 194NF
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Applicable TDS rate for sale of property in Nov 2024
- Capital gain consideration
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
