Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Tally entry for personal property loan

16 September 2024

Personal loan for 80 lakh for land for personal use but received in bank 77lakh 61 thosand rest of the amount processing fee and insurance and land registration fees 2lakh or somthing how can entry in tally prime all of this please ele rate this

Reply
Follow
Share

8 Replies

R N Tiwari (CA) (24 Points)
Replied 16 September 2024

In Tally Prime, you can record these transactions by making appropriate entries for the loan, processing fees, insurance, and land registration. Here’s a step-by-step guide:

1. Create Ledgers

You will need to create the following ledgers under appropriate groups:

Loan Account (Bank Loan):

Under: Loans (Liabilities)

Name: Bank Loan (80 Lakh)

Bank Account (Bank where loan is credited):

Under: Bank Accounts

Name: Your Bank Account (77.61 Lakh received)

Processing Fees:

Under: Indirect Expenses

Name: Processing Fees (Amount deducted for fees)

Insurance:

Under: Indirect Expenses

Name: Loan Insurance (Amount deducted for insurance)

Land Registration:

Under: Indirect Expenses (or Fixed Assets if it is part of the land cost)

Name: Land Registration (Amount deducted for registration)

2. Entry for Loan Disbursement

When the loan is disbursed and the amount is credited to your bank account (₹77,61,000), the entry would be as follows:

Journal Entry:

Bank Account Dr. ₹77,61,000

Processing Fees Dr. ₹2,00,000 (or actual amount)

Insurance Dr. ₹X (actual insurance amount)

Land Registration Dr. ₹Y (actual registration amount)

To Loan Account (Bank Loan) Cr. ₹80,00,000

Narration: Loan disbursement and deductions for processing, insurance, and land registration.

3. Additional Adjustments

Depending on how the land purchase and registration are handled, you may need to record the registration fees either as an indirect expense (if you're considering it an immediate expense) or as part of the land cost (if capitalized).

Land Account Dr. ₹Z
(if you capitalize registration as part of the asset)

This way, your accounts will reflect the exact amount received in your bank, the expenses for fees and insurance, and the total loan liability of ₹80 lakh.

Upgrade to CAclubindia Pro. Subscribe Now!

Sayed Nabil (385 Points)
Replied 17 September 2024

Sir all loan taken for personal use not business use but amount 77.61k received firm current account out of 80lakh please look in to the matter how to show this in the books of accounts

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 17 September 2024

Make Journal entry to Capital account

Sayed Nabil (385 Points)
Replied 17 September 2024

Please explain me with entry

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 17 September 2024

Originally posted by : RAJA P M
	Make Journal entry to Capital account

Entries given in first reply by another member.

Upgrade to CAclubindia Pro. Subscribe Now!

Sayed Nabil (385 Points)
Replied 17 September 2024

If owner take the loan for personal use and amount credited to the owners firm bank account the entry will be the same which is first member explain to me

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 17 September 2024

Originally posted by : Sayed Nabil
	If owner take the loan for personal use and amount credited to the owners firm bank account the entry will be the same which is first member explain to me

Yes...

But, These are not expenditure. So, it will be transfer to capital account.

So, transfer the expenditures to capital account with JV.

Yi Zhong (2 Points)
Replied 20 September 2024

If owner take the loan for personal use and amount credited to the owners firm bank account the entry will be the same which is first member explain to me Best Gold Bullion Partners In London

Please explain me with entry