Doubt

This query is : Resolved

Devendra (Querist)
Follow

17 December 2010 Mr. X obtains loan from bank Rs. 500000 and starts business. Then in the balance sheet will the loan obtained be shown as Capital as on first day Rs. 5 lakhs and Secured loan Rs. 5 lakhs? Please tell me..

Regards,
Devendra

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

18 December 2010 Secured Loan Rs 5 Lacs.
Can not show it as capital. It is not self introduced but obtained as loan.

CA Shailesh +91 9393926464

CA Shailesh +91 9393926464 (Expert)
Follow

18 December 2010 First of all, he cannot show the loan, both as a capital introduction and as well as Secured Loan..

Either of the case can happen..

If he takes a personal loan... he can show the same as Capital Introduction. But, if its a business loan, the same will become Secured/Unsecured Loan in the books of business

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok