example a person cash loan from rs:19,000 * 20 different persons total rs:3,80,000/- received
but a person loans from different persons account head create
loan from different person rs:19,000
loan from different person rs:19,000/-
loan from different person rs:19,000/-
remaining 17 persons total rs:3,80,000/-
question:
a person above mentioned loans from different persons accounting entry passed in books accepted in it act.
Tax Benefits on Business Loan – At a Glance. Business loan interest amount is tax exempted; Principal loan amount is not tax deductible and do not offer any tax benefit; The interest paid on a business loan is usually deducted from the gross income; Personal loan taken for business purposes is also tax deductible; Helps in the reduction of total tax amount to be paid
Bank a/c 3,80,000
To unsecured creditor 1a/c 19000
To unsecured creditor 2 a/c 19000
.
.
To unsecured creditor 3 a/c 19000
Then financial liabilities are measured at amortised cost.
I dont know the tax exemption entries for principle, but normal repayment will be
By Unsecured creditor 19000
By interest 1000
To bank 20000
and you will calculate corporate taxes accordingly
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