Adjustment of the loan taken for employee
This query is : Resolved
21 March 2013
Dear All,
We have given a car by taking loan to an employee and paid the EMI for some time but now the employee has left our organisation and the EMI will be paid by the employee himself but he has repaid some of the EMI paid by us.
what will be the treatment of such receipt and the loan outstanding and the car in the books as the loan is still in the name of the organisation and the car is sold to the employee.
We have given a car by taking loan to an employee and paid the EMI for some time but now the employee has left our organisation and the EMI will be paid by the employee himself but he has repaid some of the EMI paid by us.
what will be the treatment of such receipt and the loan outstanding and the car in the books as the loan is still in the name of the organisation and the car is sold to the employee.
21 March 2013
Hi Shruti,
First transfer the loan outstanding and car registration in the name of employee.
What ever you received from Employee, consider it as sale proceeds and compare it with (wdv-outstanding loan value) of Car in Company accounts.
In simpler words, close all accounts in relation to the car and loan, book the closing balance in P&L after considering the cash received from employee.
Account for profit or loss.
First transfer the loan outstanding and car registration in the name of employee.
What ever you received from Employee, consider it as sale proceeds and compare it with (wdv-outstanding loan value) of Car in Company accounts.
In simpler words, close all accounts in relation to the car and loan, book the closing balance in P&L after considering the cash received from employee.
Account for profit or loss.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- DELIVERY GOLD & SILVER AND OTHER ETF TRADING PROFIT AS BUSINESS INCOME
- GSTR-1A How to update Invoice
- Excess salary payment.
- 3cd- cash system of accounting is allowed?
- Provision for loans that are under Revenue Recovery
- APPLICABILITYOF GST ON STUDENT HOSTEL FEES
- Form 121-contradictory opinions
- Capital gain from sale of house property
- Stamp Paper for partnership firm change new income tax 2025
- Is Personal Guarantee of Director is Compulsory in case of loan to company ??
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
