Loan from Bank Through Director
Ankur (Student) (34 Points)
19 March 2008Ankur (Student) (34 Points)
19 March 2008
CA. Amit Daga
(Finance Controller CA. CS. CFA. CIFRS. M.COM. )
(9017 Points)
Replied 19 March 2008
Accounting Treatment is wrong.. Company has not shown loan from Bank.This is a loan from Director.Because company is not liable to pay the loan to the Bank.Director is the responsible person only.
Samir
(Chartered Accountant)
(145 Points)
Replied 19 March 2008
Dear Ankur,
I agree with argument realted to wrong accounting entry done herewith.
You need to check the provisions of Sec.58A of Companies Act also. According to me, the transaction is not exempt in Rule 2(ix) of said provision. It seems violation of Provisions of Sec.58A applicable to Private Co.