CA Karan Sathe
(CA )
(564 Points)
Replied 02 December 2015
you said loan amount received in bank a/c ...so asset must be purchased by paying from this bank a/c. 1st entry - Bank A/c Dr. 100000/- ...To Loan A.c 100000/-.... accordingly 2nd entry will be Asset a/c Dr. 100000/- ...To Bank A/c..
Stranger
(.)
(5531 Points)
Replied 02 December 2015
@ Hiten : The followwing entries required to be passed:
1) On disbursement of loan amount
Bank A/c Dr. 1,00,000
To Loan A/c 1,00,000
(Being amount received on account of loan sanctioned from ........... secured by,if any)
2) On purchase of Asset
Asset A/c Dr. 1,00,000
To Bank A/c 1,00,000
(Being asset purchased on loan)
3) On interest due (each month)
Interest A/c Dr.
To Loan A/c
(Being interest due on loan)
4) On payment of EMI (each month)
Loan A/c Dr. 36,000
To Bank A/c 36,000
(Being payment of EMI made)
5) On charging depreciation (at the end of each year)
Depreciation A/c Dr.
To Asset A/c
(Being depreciation charged)
6) On transferring Interest & depreciation to P & L A/c (at the end of each year)
P & L A/c Dr.
To Interest A/c
To Depreciation A/c
(Being interest & depreciation transferred to P & L A/c)
I hope ur doubt is cleared now....
CAclubindia
