Regarding application of bank loan in case of educational institution

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Is it mandatory to show receipt of loan from Bank and purchase of Fixed assets and repayment of Bank Loan as receipt of Income and Application of Income in the case of Educational society in computation statement? If so, whether unused Bank Loan is to be shown as accumulation of Income for the year?
Replies (1)

Receipt of bank loan is not income. So, unsed loan should not be considered as accumulation.

Receipt of loan, use thereof for fixed assets and repayment of loan should be shown in 'receipts and payments account' and balance of loan (at year end) should appear in the BS.

Repayment of loan is considered as application of Income in case of trusts.

Pl wait for more replies.


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