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Adjustment in LOan

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Querist : Anonymous

Querist : Anonymous (Querist)

29 August 2010 Hi
Respected Members

Can any one tell me?

i am doing tax audit of PVT. LTd. in such company car loan taken on director's name and used for business purpose.

But it is shown as loan taken from director but shown as loan taken from bank.

So what to do for adjustments?

is it right or wrong?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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29 August 2010 1.Loan and its repayment must be removed from the books of the company. OR
2.Loan and its repayment should be transferred to Directors personal account in the company.
The first option may be preferred.
If company doesnot accept one among the two, disclose the fact in the "notes on account" and suitably qualify the audit report also.

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