Ram proprietor of ABCD Firm taken loan from his son Ravi Rs. 1 Lakh in 2016-17.
In 2019-20 Ram died and Ravi became the proprietor of the said firm.
Now my question is that whether Ravi's unsecured loan can be transferred to his capital A/c.
When father takes money from son is will not treated as unsecured loan
but a gift as per law not not reported in balance sheet as unsecured loan
but as you mentioned unsecured loan and father died unsecured loan will transfer to capital account after full accounting treatment of unsecured loan and money recovers from that loan and being in hand of son and son again introduce that money as capital
CAclubindia
