RAJ KUMAR (FINANCE MANAGER) (1393 Points)
20 May 2011HELLO FRIENDS, IF A CAR IS CAPITALISED IN THE BOOKS AND CAR LOAN IS ALSO IN THE BOOKS MY CLIENT PAYS THE CASH IN THE SAVINGS ACCOUNT AND INSTALLMENT OF CAR LOAN IS PAID FROM THE SAVINGS ACCOUNT.
NOW WHAT IS THE ACCOUNTING ENTRY FOR IT
CAPITAL A/C
TO CASH
WHEN CASH IS WITHDRAWN AND DEPOSITED INTO THE SAVINGS A/C
LOAN A/C
TO CAPITAL A/C
WHEN LOAN IS PAID FROM SAVINGS A/C.
IS THIS TREATMENT CORRECT.
PLS. HELP ME.
Harpreet
(* * * * * *)
(1670 Points)
Replied 20 May 2011
If you consolidate the both entries then you will get the following entry:
Loan A/c Dr. 10000/-
To Cash Cr. 10000/-
But you should follow your treatment to book the entries in books.
Mayank
(Sr.Accountant)
(152 Points)
Replied 21 May 2011
hi,
2nd entry should be
Loan A/c Dr
To Bank a/c
because if u do the above entry then u r increasing ur capital.
RAJ KUMAR
(FINANCE MANAGER)
(1393 Points)
Replied 22 May 2011
BUT SAVINGS ACCOUNT IS NOT SHOWN INTO THE BOOKS OF ACCOUNTS.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 22 May 2011
loan a/c dr .......
to capital a/c ............
capital a/c dr ............
to cash a/c
CAclubindia
