Bank CC right entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 January 2010 dear experts,
pls advice me to do entry in below case.
bank loan CC A/c

C.C taken Dr.125000
Interest Dr.11799
Process Fee Dr.688
Loan Amount Paid Rs.14874
Interest Paid Rs.8226
Process Fee Paid Rs.688

As per bank statement there is a dr. balance of Rs.113699

thanks in advance

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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11 January 2010 When you take a new CC limit then there will be no new entry. When you will start transaction in this account, entries will like normal bank entries.

Entry for bank interest and processing fees:

Intt. on CC account Dr.
Bank Charges A/c Dr.
To Bank CC A/c

Loan Amount Paid:
Loan A/c Dr.
To Cash/Bank A/c

Intt.:
Intt. on loan A/c Dr.
Bank charges A/C Dr.
To LOan A/c

CA Pramod Jain

CA Pramod Jain (Expert)
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11 January 2010 entries will be as follows
bank/cash dr125000
to cc 125000

int 11799 dr
bank chg dr 688
to cc 12487

cc dr23788
to bank /cash 23788

cl bal as per above books of account of cc will come rs.113699

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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11 January 2010 Mr. Jain ...........it is not mentioned that he has withdrawn money from CC account

further there is difference between CC account and loan account

CC is not a loan account, it is routine account so the deposit can't be said repayment.