Journaling Loans account.

This query is : Resolved

sajid (Querist)
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22 May 2010 Loan taken from Hema Rs.15lacs,
Loan from SBI BANK Rs.5 lacs,
Loan from Financial institutions Rs.2lacs,
Overdraft from Bank Rs.3 lacs,
Interest paid to Hema Rs.15000/-
Interest paid to Bank Rs.5000
Interest paid to Finance Rs.3000
Interest on overdraft Rs.3500

Please make the journal entries for this transactions.

A. Sankaranarayana

A. Sankaranarayana (Expert)
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22 May 2010 1. Loan taken from Hema Rs.15.00 Lacs

Bank A/c Dr.15.00
To Hema's Loan 15.00

2. Loan from SBI Bank Rs.5.00 (assumed as Term Loan)

Bank A/c Dr. 5.00
To SBI Term Loan 5.00

3. Loan from Financial Institution:

Bank A/c Dr.2.00
F.Inst. Laon 2.00

4. Overdraft from bank

There is no entry required, u may issue a cheques upto Rs.3.00 Lacs, even no fund in your Bank Account

5. Int. Paid to Hema

Int. paid A/c Dr.15,000
Hema's Loan 15,000

6. Int. Paid to Bank

Interest A/c Dr.5,000
to Bank 5,000

7. Int. Paid to Finance Institution:

Interest A/c Dr.3,000
to Bank 3,000

8. Int. on OD

Interest A/C Dr.3,5000
to Bank 3,500

As per my knowledge, the abvoe entries are correct, I beleive.

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