banner_ad

Accounts

This query is : Resolved 
Profile Image

Profile Image

(Querist)
26 August 2012 what is the basic difference between loans & advances and loans & advances (assets).... i always get confuse in these terms..plz explain me
Profile Image

CA vidhyadhari

Profile Image

CA vidhyadhari (Expert)
27 August 2012 hi nidhi...

its so simple..

when we take loans & advances from others it is a liability and will be shown on liabilities side..

when we give loans & advances to others it is an asset as we get that money back in future. so it will be shown on assets side...
Profile Image

Jagga Rao Malipeddi

Profile Image

Jagga Rao Malipeddi (Expert)
30 August 2012 The explanation of Ms Vidyadhari is right. In a balance sheet if loans and advances appear in liabilities side, that means the business concern has availed loans and advances (say from bank or from individuals) hence they are the liabilities.

If they appear on asset side, the business concern has lent them to others which are recoverable and hence they are assets.

Hope you are clear now.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
07 May 2026
CA Assistant

amit desai and co

Mumbai

CA Final

View Details
Company
10 May 2026
Finance specialist

Right way solution

Ajmer

CA

View Details
Company
19 May 2026
Accountant

ca kunjan

Mumbai

CA Inter

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details