Payment of unsecured loans

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 December 2011 can unsecured loan of rs. 25000 paid by sale of goods by the assesse? because i know unsecured loan can be paid in cash/account payee cheque..can it be paid in exchange of goods?

Aijaz Shaikh

Aijaz Shaikh (Expert)
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03 December 2011 You will pass the following entry while paying the unsecured loans:-

Unsecured Loan A/c Dr.
To Sales.

This implies unsecured loan is included in your sales i.e. your income.

Once unsecured loan is offered for income, there is no chance that it will be included again.

Implies that unsecured loan can be paid through sale of goods.