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Term loan

Accounting Home Services (Finance Executive ) (734 Points)

28 March 2017

How to treat Term Loan in Balance Sheet, i mean whole sanction amount show in Liability side or EMI in asset side.

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5 Replies

(Guest)

whatever loan u get show in liability side

emi is installment which includs some part of interest and some part of loan

which is to be repaid

interest is comes under indirect expense and paid of loan amount through

emi whch is already comes under liabilty side under heading loan

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Accounting Home Services (Finance Executive ) (734 Points)
Replied 29 March 2017

We have Rs 10 lakh term loan in FY 2015-16 EMI 29000 in FY 2015-16 we repaid 4 EMI (29000*4) now i want to know how i post in balance sheet please let me know.

(Guest)

entry for receive lone

bank a/c - 1000000/-

To unsecured \secured loan- 1000000/- (liability side )

(being loan received from bank ) -

entry for payment of loan

loan a/c 29000/-

to bank - 29000/-

being loan installment paid

CA Himanshu Bansal (Risk Manager) (2345 Points)
Replied 31 March 2017

Originally posted by : Girish Suryawanshi
	We have Rs 10 lakh term loan in FY 2015-16 EMI 29000 in FY 2015-16 we repaid 4 EMI (29000*4) now i want to know how i post in balance sheet please let me know.