loan

This query is : Resolved

arun (Querist)
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05 January 2010 sir my firm taking a loan from his partners wife.that time firm has no any account in bank.1 month later firm opening his account in bank. what will be repayment & loan taken entry.

Bhavesh

Bhavesh (Expert)
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05 January 2010 dont take loan in cash; exceeding Rs.20,000

You will attract the provisions of income tax and the income will be taxable

Zeeshan

Zeeshan (Expert)
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05 January 2010 Entry will be:
Cash/Bank A/c Dr.
To Mrs. XYZ A/c.

Repayment:
Mrs. XYZ A/c Dr.
To Bank A/c

as adviced by bhavesh donot take/repaid loan in cash exceeding 20000/- otherwise it will be treated as income as per section 269.

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