LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Loans

suvranil satpati (Accountant) (41 Points)

25 June 2016

Can Anyone pls tell me if company A receives as well as gives loan to company B then under what head of Tally would it fall. I mean at the time of creating Ledger what would be the head of Company ...Would it fall under loans and advances or loans (Liability)....can anyone pls reply...

Reply
Follow
Share

5 Replies

Rammi_RP Rawat (Accountant ) (386 Points)
Replied 25 June 2016

In Case A Company At the time of received loan

Bank A/C / Cash ( Bank Account) Dr......

A Company (Head Unsecured Loan) Gorup Loan Liability Cr.....

In Case B Comapny At the time of give loan to company

B Company (Head Loan & Advance ) Dr....

Bank A/C / Cash ( Bank Account) Cr.....

suvranil satpati (Accountant) (41 Points)
Replied 25 June 2016

Sir,

Thanks for your reply . Over here you have mentioned that when we give loan to Company B we are putting it under LOANS AND ADVANCES.Its right but in Tally, once we can create B company Ledger and put it under LOANS AND ADVANCES .then again we cannot change that.Now if we are receiving Loan from Company B in the same year then how can we change the head to because we have already put it to LOANS AND ADVANCES.Kindly Reply...

Rammi_RP Rawat (Accountant ) (386 Points)
Replied 25 June 2016

BASIS FOR COMPARISON	LOANS ( SECURED / UNSECURED )	LOAN & ADVANCES
Meaning	Funds borrowed by an entity from another entity,	Funds provided by the bank to an entity for a specific purpose,
	repayable after a specific period carrying interest rate is known as Loans.	to be repayable after a short duration is known as Advances.
What is it?	Debt	Credit Facility
Term	Long Term	Short Term
Legal formalities	More	Less
Security	May or may not be secured	Primary security, collateral security and guarantees.