Accounts journal entry

This query is : Open

DEVENDER THAKUR (Querist)
Follow

24 May 2012 Respected Experts ! We purchased a Property for Rs.14400000/- and loan was taken from Bank. Property transferred to Partners Account and the Interest charged by bank was debited to partners account. As the loan amount is being used by the partners , we want to debit the principle amount to partners account. What entry should we pass for the same purpose

We passed the entries

Property account Dr.
To Bank Loan Account

Partners Account Dr.
To Property Account

Interest on Loan A/c Dr.
To Bank Loan Account

Partners Account Dr.
To Inrerest on Loan Account

Bank Loan Account Dr.
To Bank Account

How can we charge the principle amount to capital accounts? Please guide me !

CA. Hari Kishan

CA. Hari Kishan (Expert)
Follow

24 May 2012 Like interest on loan.. similarly you shall require to transfer the bank loan account to the capital account of the partner. It shall then be reflected in the personal statement of affairs of the partner.

Message likes : 2 times

DEVENDER THAKUR

DEVENDER THAKUR (Querist)
Follow

25 May 2012 When we transfered the intt to capital then we credit the intt and debit the capital. But in this case if we debit the capital and credit bank the bank loan account remain unchanged.

DEVENDER THAKUR

DEVENDER THAKUR (Querist)
Follow

25 May 2012 When we transfered the intt to capital then we credit the intt and debit the capital. But in this case if we debit the capital and credit bank the bank loan account remain unchanged.

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