Educational loan and its application in accounts
This query is : Resolved
13 January 2012
my client has availed an educational loan from the bank and he has been repaying the interest to that educational loan. Now i would like to know how it is shown in his books of accounts while he is filing his individual income returns ? the loan amount was directly paid by the bank to the concerned college authorities.
17 January 2012
Interest paid on education loan is allowed as deduction under Section 80E.
17 January 2012
sir i have not asked about tax treatment. i am asking about way of treatment in books of accounts of the assessee.
12 May 2012
Normally books of accounts are maintained for a business and transactions related to business are recorded in books of accounts.
Education loan is not related to business.
However, if you still want to record the same, entries will be as under:
1. Grant of Loan
Drawings A/c Dr
To Education Loan
2. Repayment
Education Loan A/c Dr
Interest on Loan A/c Dr
To Bank A/c
Education loan is not related to business.
However, if you still want to record the same, entries will be as under:
1. Grant of Loan
Drawings A/c Dr
To Education Loan
2. Repayment
Education Loan A/c Dr
Interest on Loan A/c Dr
To Bank A/c
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
- Unregistered suppliers utility
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- ITDS U/S.194T of Firm
- Difference between Date of Payment and Date of Deduction?
- GST Rate for Catering Services
- The TDS balance for March 26 shows a mismatch between the books and the portal; what should be done
- URGENT-Eligible leaves being shown as 24 days for 3 years Articleship instead of 156 days in 108
- Same demand raised for original as well as rectification request return
- Sale of property held jointly with a non resident Indian
- NRI starting business in India
- GST not cancelled by tenant
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
