Accounting entry of unsecured loans

Is there sufficient cash in the business to pay off all the old unsecured loans. If not, first pass entries for new unsecured loans and use the funds to pay off all the old loans. 

I have not used tally.. but normal accounting entries bank receipt > Dr. Bank a/c Cr Unsec Loans. Pay off old loans through Dr. Unsecured loans Cr. Bank a/c.

Dear Shweta,

Maximum Rs. 20000 can be taken from a single person as unsecured loans in Cash. Otherwise the whole amount will be treated as income and shall be chargable to tax.

So,  if you want bigger amount then take through bank account.

On Receiving New Loan

Bank A/c Dr.

To XYZ A/c

On Repaying Old Loan

ABC A/c Dr.

To Bank A/c