I.t. Assess un secured loan and Sundry debtor(cash loan) outstanding ledger balance as on 31-03-20 in books.
unsecured loan name :Mr.A Rs:4 lacs.
sundry debtors (cash loan) name :Mr.B Rs: 5 lacs.
question:
unsecured loan balance amount(Mr.A) transferred to Sundry debtor(Mr.B) account adjustment accounting entries passed in books allowed in I.t. act.
I’m not sure but I think it is possible. Before that, make sure, you document the transfer of hands and add it to debtors. If anything goes wrong, I believe this act in India will help you - THE USURIOUS LOANS ACT, 1918
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