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.
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