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Unsecured loan

This query is : Resolved 

Hello Expert,

I want to ask regarding Unsecured Loan.

What if a person dies to whom repayment is pending. My query is Shall I treat my unsecured loan(which is not repaid) as a Assets?

Please Guide me for this.

If it's not repayable take it to other income.

No, Ownership of money is not of the Company but that of legal heair of the deceased deposit holder or successor of that person.
The Company is obliged to pay such successor/ legal heair, on production of proof of succession in property of that deceased person i.e. will, or probate and death certificate.

Thanks for referring query.

Just keep it in your books. Normally you should reverse it and show as income.

If the lender is a Company/PFAS/LLP then the others directors, partners have to be paid.
If that was a sole proprietorship firm then the legal heir will be eligible to receive the repayment.

Thank you so much experts........it helps me lot...............

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