Unsecured loan

This query is : Resolved 

06 February 2019 Hello Expert,

I want to ask regarding Unsecured Loan.

What if a person dies to whom repayment is pending. My query is Shall I treat my unsecured loan(which is not repaid) as a Assets?

Please Guide me for this.


06 February 2019 If it's not repayable take it to other income.

06 February 2019 No, Ownership of money is not of the Company but that of legal heair of the deceased deposit holder or successor of that person.
The Company is obliged to pay such successor/ legal heair, on production of proof of succession in property of that deceased person i.e. will, or probate and death certificate.

Thanks for referring query.


06 February 2019 Just keep it in your books. Normally you should reverse it and show as income.

06 February 2019 If the lender is a Company/PFAS/LLP then the others directors, partners have to be paid.
If that was a sole proprietorship firm then the legal heir will be eligible to receive the repayment.

07 February 2019 Thank you so much experts........it helps me lot...............



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries