Hai guys!!!!
I need your help can any one please tell me what shold we do "If we have only closing loan details and not having opening loan details ,were we will take that amount in balance sheet"
Thank you in advance
Manish Kumar Sharma
(Article)
(103 Points)
Replied 24 July 2013
Hai gayatri,
Loan would surely going to be part of balance sheet, since you have closing loan details then you should show it at liability side of balance sheet, however every increase in liability either result in decreasing in other liability or increasing in asset. So you should connect the loan with one of liability or asset,
Like, it can so happen that in case of an individual he had bought a bike and taken finance from some financer, however forgot to show it in his personal accounts, in that case you know that loan is taken for a asset (i.e, bike), in that case you should take liability of closing balance of laon, show bike as an asset at its original cost and difference amount should adjusted with capital,
and to be more precise you can ask the loan provider for the statement from the start day of loan, and adjust the opening balance sheet accordingly.
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