Bank loan wrongly passed

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If you find an incorrect debit balance for a bank loan that doesn't exist in your books, it's crucial to address it. The first step is to verify the actual balance and perform a bank reconciliation. If the error originated from the bank, contact your branch directly to request a correction. If a mistaken journal entry was made, you'll need to reverse it with a correcting entry, ensuring you use the appropriate ledger account.

Rahul

Rahul (Querist)
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11 May 2020 Hi

there is a wrong debit balance in name of bank loan account, and no such bank loan exists in book of account, so how can be removed such error in our current year books.

Spurto Consultancy Services

Spurto Consultancy Services (Expert)
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11 May 2020 If the bank have wrongly transferred the loan amount to your account then contact the bank branch.
Further, if wrong journal entry have been passed in books of accounts then reverse the journal as below:
Bank Loan A/c Dr.
To _________ A/c Cr. (mention the correct ledger here)

Rahul

Rahul (Querist)
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11 May 2020 balance of bank loan already debit, how can we again debit such amount, and what is the correct ledger mean? if we do not have any loan persist in current year.

i need a settlement entry to be done in current year...

Soumitra Basu

Soumitra Basu (Expert)
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11 May 2020 Firstly verify what is the actual admitted balance. Make a re-conciliation. Simple send a letter to bank to correct the account. That will adjust automatically.

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