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Is home loan of proprietor shown in liability side of b/s?

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This query is : Resolved

Prasad A Patil (Querist)

24 January 2018 1. Proprietor has home of Rs. 24,00,000 and he has under construction building (home) worth Rs. 38,00,000. Please let me know, whether loan can be shown on liability side and under construction building can be shown on asset side in balance sheet of his firm.
2. Proprietor is paying home loan EMI, from firm's bank current account.
a. Whether home loan can be shown in his firm's accounts?
b. If yes, the EMIs paid from bank current account can be taken to Home Loan A/c or Drawings?

RAJA P M

RAJA P M (Expert)

25 January 2018 No need show it... Show the EMI amount in Proprietor drawing account... Also you can avail the deductions in ITR...

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

26 January 2018 Home and home loan cannot be shown in the firm balance sheet. the EMI payment from firm`s current account need to show as drawings under capital a/c as suggested by the expert

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