Entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 July 2012 House Property Purchased on loan,
Pls tell me the entry of this,
And can i show the property under fixed assets as the original papers of property is not been handed over to us by bank. I Mean house is still under the control of bank so how can we show, that house is our property till loan is repaid.
Thks

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
Follow

15 July 2012 Bank has taken your original paper as security with this they have also taken many written paper from you which are also for their security and laws.

Ok do not worry this is formalities

you can shown fixed assets in you balance sheet even if bank has not given original paper to you. i show you how to prepare it in you accounts with example

for example,if your property is purchased @ 15 lacs & loan amount is 12 lacs also 3 lacs paid to seller

now doing entry

Fixed assets Dr. 3 Lacs
To Bank (Advance payment)3 Lacs
Fixed assets Dr. 12 Lacs
To Bank (Loan Liability) 12 Lacs

Message likes : 1 times

CA. Sunil Kumar

CA. Sunil Kumar (Expert)
Follow

15 July 2012 You must have already done the entry while you had taken loan against house property.
Then you may have done the entry

house property a/c Dr.

To Party

Party a/c Dr.

To bank

You had mortaged the property to bank, hence the property still belongs to you.So you can show the House in your balance sheet and on the other side of loan and advances you will provide that the house is subject to the loan amount.

Message likes : 1 times

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