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LOAN ACCOUNT & ITS PAYMENT entries in quickbooks

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This query is : Resolved

Amit Kumar (Querist)

04 September 2020 We have one situation and is described as:

Suppose LOAN is taken from PNB bank & is transferred to the Company's bank account- IDBI bank.
Later on, the loan is transferred to the owner's Saving account (VIJAYA BANK).

But EMI payment is being done thru company IDBI Bank account only. How entries will be done?

Eg.

MAIN COMPANY > LOAN from PNB bank > Get the loan from pnb bank > Amount is credited to the company's IDBI current bank account > Later loan is transferred to owner's personal saving bank a/c (VIJAYA BANK) > EMI is paid by company's current bank account till date.

A loan is taken 4 years back. Which entries need to be passed in Quickbooks/ Tally?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

26 December 2020 At the time of loan receipt the below entries will be made :

PNB Bank - Dr.
Lender A/c - Cr.

Later on transfer to IDBI Bank :

IDBI Bank - Dr.
PNB Bank - Cr.

Later on transfer to Personal Account of Owner (Will be accounted as drawings):

Capital Account - Dr.
IDBI Bank Account - Cr.

On Payment of EMI:
Lender A/c - Dr.
PNB Bank A/c - Cr.

Hope this helps...

Thanks

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