Cash credit

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syedabuthahir

syedabuthahir (Querist)

24 March 2013 how to account cash credit it like loan

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

24 March 2013 Yes, it is like loan. When you deposit money into such account debit to the account and when you with drawn then credit to the account. And this account shall be group under bank OD/CC.

OM SAI SRI SAI JAI JAI SAI

syedabuthahir

syedabuthahir (Querist)

28 March 2013 THANK U SIR BUT WHEN I OPEN THE CASH CREDIT ACCOUNT INITIALLY HOW TO ACCOUNT IN ACCOUNT BOOK WHAT IS THE ENTRY FOR THIS PLEASE SUGGEST ME SIR

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

28 March 2013 Click on the below link it will take to you to the page of accounting entries for CC account which is explained by me to another same query.

https://www.caclubindia.com/experts/bank-cc-a-c-all-entres-1267889.asp

OM SAI SRI SAI JAI JAI SAI

syedabuthahir

syedabuthahir (Querist)

04 April 2013 sir, when we open cash credit account how to account in our books if we take loan for purchase machine, loan wil be in liablities and assets will be machines so tallied so the entry will be loan cr and machine a/c debit. In cash credit account how it will come

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

04 April 2013 Yes, same entry like loan will applicable. If you make any purchases from cash credit account then give debit to the purchases account and credit to the Cash credit account and cash credit account should be grouped under BANK OD/CC loans.

OM SAI SRI SAI JAI JAI SAI

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

04 April 2013 Cash credit means it is also loan. CASH CRDIT is the one of the type of loans there are two types of loans term loans and CC/OD loans. Term loan means repayment shall be made by Instalments and CC/OD loans means like Current account but only one thing is to operate that account funds shall be provided by the bank. So term loans shall be grouped under secured loans from banks and CC/OD loans shall be grouped under BANK OD/CC account and same entries who you will be accounting for term loan account will applicable for CC/OD Loan account.

I think you are going to confiusion due to the wording of CC loan don't be confusion it is also loan and account same like as loan.

OM SAI SRI SAI JAI JAI SAI

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