Entry for bank loan
This query is : Resolved
14 March 2022
Dear All,
We have taken a business loan from bank of 15,00,000. Bank has deducted Insurance Premiun Rs. 10,000/-, Processing Fees Rs. 35,400/- and documentation charges Rs.3,000/-. The net amount disbursed is Rs.14,51,600/-. I have debited the Bank with Rs. 14,51,600/-, debited the expenses into one as Processing fees Rs. 48400/- and credited Loan account with Rs. 15,00,000/-.
Is the entry correct or will i have to bifurcate the expenses as Insurance premium, documentation charges and processing fees, as i have taken all the expenses into one that is processing fees.
Thanking you,
We have taken a business loan from bank of 15,00,000. Bank has deducted Insurance Premiun Rs. 10,000/-, Processing Fees Rs. 35,400/- and documentation charges Rs.3,000/-. The net amount disbursed is Rs.14,51,600/-. I have debited the Bank with Rs. 14,51,600/-, debited the expenses into one as Processing fees Rs. 48400/- and credited Loan account with Rs. 15,00,000/-.
Is the entry correct or will i have to bifurcate the expenses as Insurance premium, documentation charges and processing fees, as i have taken all the expenses into one that is processing fees.
Thanking you,
15 March 2022
Yes, the entry is right no need for bifurcation.
15 March 2022
Thank You, Sir for your reply.
15 March 2022
Yes, the entry is correct.
If there is GST component in processing fees and others then you can take ITC
If there is GST component in processing fees and others then you can take ITC
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