Transfer of loan
This query is : Resolved
16 February 2016
A person "X" who is an NRI gave a loan to a friend "Y" in good faith of Rs. 15,00,000/- in India in Indian Rupees. Y took the loan for a proprietory concern ABC which belonged to a student of Y. Now, ABC is running into losses even though the loan was taken and expenses was incurred against the loan in ABC concern. Now, Y wants to incorporate this loan taken by X in the books of a pvt. Ltd. Company owned by Y himself, in which he is a director. No cash inflow outflow has to be shown. Please advise how can the loan appearing in the books of the loss making concern ABC can be transferred in the books of Y's Pvt. Ltd. Company? Can this be done through accounting entries? or is Slump sale a good option for Y's Pvt. Ltd company to buy ABC in slump sale agreement for a nominal consideration? Or can a bill of instrument can be used here by ABC to pass the loan to Y's comapny?
16 February 2016
Now, Y wants to incorporate this loan taken from* X in the books of a pvt. Ltd. Company owned by Y himself, in which he is a director.
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