Pradeep Sharma
(student)
(114 Points)
Replied 30 March 2010
entry will be
Secured loan A/c dr 50,000/-
Intrest on loan A/c dr 5,000/-
To Bank 55,000/-
Secured loan will be opened in the secured loan group, where as intrest on loan in indirect expenses.
SACHIN KUMAR GARG
(Final Student)
(105 Points)
Replied 30 March 2010
vendor A/c Dr 50000
Interest on loan A/c Dr 5000
To Bank A/c 55000
Mohan
(Accounts Mgr)
(209 Points)
Replied 01 April 2010
1) Fixed Asset A/c (Debit) Vendor A/c (Credit) – while acquired asset.
2) Vendor A/c (Debit) Lender A/c (Credit) – bcoz Banker pay off liability.
3) Lender / Loan A/c ( 50,000) (Debit)
Interest on loan (5,000) Debit
To Bank Account (55,000 i.e., EMI)
4) Loan reflects in the Balance sheet for Principal Loan Outstanding.
5) Interest charged to P&L a/c every year as it is an expenditure.
6) If you by installment from Vendor…. Pradeep entry is correct.
7) If you buy on hypothecation from Lender….sachin entry is correct.
Mohan
(Accounts Mgr)
(209 Points)
Replied 01 April 2010
sory..for 6th point...sachin is correct and for 7th point pradeep is correct.
SACHIN KUMAR GARG
(Final Student)
(105 Points)
Replied 05 April 2010
sir
vandor A/c is open under the head of Secured loan. so, no question arises 4 7 entry
Mohan
(Accounts Mgr)
(209 Points)
Replied 11 April 2010
Vendor should be Sundry Creditor....which falls under Current liabilities.
Lender should be Secured loan....which falls under Term Liabillties.
regards'
Mohan
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
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