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How to close a loan amount in books of accounts

Harish (8142732938) (26 Points)

12 March 2016

A company Given loan to Out side person Rs 600000/-.The amount which is given recovered from that person on Annually basis Rs 100,000/- but the accountent not recorded that amount received .Right now Loan amount fully Recovered With in 6 years In the seventh year The loan amount showing Rs 6,00,000/- How to close this amount .If i record this as recevied this year My cash balance showing more .Company Is related Tax Audit From The Begining .

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4 Replies

CA Raj Doshi (Practising CA) (8723 Points)
Replied 13 March 2016

Ask for that 3rd party ledger for 6 years. That may give you guidance as to whether loan repaid or still outstanding

Harish (8142732938) (26 Points)
Replied 14 March 2016

Third Party Ledger Showing Loan Amount Fully Cleared .

Punith (Article assistant) (107 Points)
Replied 15 March 2016

Hi Harish,

the question is if u have received the amount yearly for 6 years then how did your Bank account or cash account tally all these years???

better to show as total amount received this year.

Harish (8142732938) (26 Points)
Replied 29 March 2016

That Amount Used By Propriter His Personal Purpose. Not At All Showed In The Books .If I show,s Full amount In This Year My Cash Balance Showing More in Books But Really I did Not Have That Much .