17 January 2011
For this no need to pass any accounting entry. just take a copy of cheque and keep in loan file,once the loan is cleared the same will be get back and cancel. so no accounting entry
17 January 2011
While giving cheque as a security, no accounting entry s warranted as no payment s made. you have already booked loan liability. giving security wont reduce your loan.. Mr. Ramesh said it correctly.
CAclubindia
