Unsecured loans to capital a/c
Querist : Anonymous
I am working in a proprietoryship firm, i want to know whether unsecured loans in the books can be transfered to capital a/c?
As far as i am thinking, if we decide that the liablity of unsecured loans would be born by the proprietor, and thus proprietor would introduce the capital in the books of proprietoryship firm, how correct i am ? and is there any tax and accounting implication that i may be ignoring? please experts reply quickly
If you show it as capital, then it shall also result in inference that the lender has effected remission of the loan which would result in income to the proprietorship. This shall be akin to remission of creditors and accordingly taxable.
Querist : Anonymous
Click here to login now
Similar Resolved Queries
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- TDS on Purchase of Immovable Property by NRI from NRI
- Regarding TDS Applicability For Director Remuneration
- Transporter Declaration form
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- Copyright software
- FORM 26A APPLICABILITY
- Tds UNDER SECTION 195 INTEREST PAID TO NRI DIRECTOR
- Clarification on TDS Applicability
- Opting our of sec 44AD
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
