Difference between Loan(liability) & Loans advance (Asset) in Tally. kindly briefly discuss with Example.
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Difference between Loan(liability) & Loans advance (Asset)
Replies (15)
Quick Summary
Loan on liability side means company has taken loan from Bank , financial Institutions etc . you have show under secured loan or Unsecured loan under liabilities in Tally .
Loan & advance Asset side means loan and advance. given by company to subsidiaries & employee s financial Institutions etc show under assets in Tally
Loan & advance Asset side means loan and advance. given by company to subsidiaries & employee s financial Institutions etc show under assets in Tally
I want to know Tally ledger of loan (liability) & Loans and advance (Asset)
in tally - two types or loan(liability) ,secured loan and second unsecured loan,when you take loan from bank so it's secured loan,when you take loan from person so it's unsecured loan
loan(advance) - when you received advance from debtors ,so it's advance loan
loan(advance) - when you received advance from debtors ,so it's advance loan
Ledger will loan from Bank under secured loan or Unsecured loan .
If loan given to subsidiaries then ledger will be loan to subsidiaries , or advance given to employee ledger will be Advance to employee .etc under loans & advance .Asset side
In Tally ledger we see under loans(Liability) and Loans and Advance (Asset). What is the difference between two.
Loans liability side loan taken by company ,
Loan & advance Assets side loan , Advance given to other
In short company take loan and give loans and advances for business purposes .
I want to know If i take loan or give loan from company it is used which head in tally loans & advance(Asset) or Loans(Liability) or Secured Loan.
Kindly answer briefly
Can bank loans be current liability? Kindly explain and cite some examples.
Bank loan - Long term Borrowings will be under Non -Current liability
Bank loan - Short term Borrowings will be under Current liability .
As per Schedule III companies act 2013 Balance sheet .
The bank loan to the extent it is repayable within one year or within normal operating cycle of the company can be classified as current liability
When the loan is shown on the liability side, it means the company has taken a loan from a bank that they have to pay off. Whereas when the loan is on the asset side of the balance sheet it means that the company has given a loan to either an employer or its subsidiary and will be earned back.
Hope this helps.
loan (Liability) simply means money taken which is to be paid off in future while Loan Advance means money lended to someone.
If you are the borrower and have taken a loan from a company, it should be recorded as a liability under the head "Loans" in Tally.
If you are the lender and have given a loan to a company, it should be recorded as an asset under the head "Loans and Advances (Asset)" in Tally.
For a secured loan, where the loan is backed by collateral, it is still recorded as a liability under the head "Loans" in Tally. However, the security provided for the loan should be recorded as an asset under the head "Secured Loans (Asset)".
A loan or liability is recorded on the balance sheet as a liability because it represents an obligation to repay the borrowed amount in the future, along with any interest or fees that may be charged. Examples of liabilities can include bank loans, credit card debt, or mortgages.
On the other hand, a loan advance or asset is recorded on the balance sheet as an asset because it represents the amount of money that an entity has lent to another entity and expects to be repaid in the future. Examples of assets can include loans made to customers, business partners, or employees.
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