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Accounting entry of unsecured loans

shweta Agrawal (article) (46 Points)

14 April 2014

A firm has unsecured loans. It wants to pay off all its unsecured loans and want to take new unsecured loans. therefore pls advise mode of payment of old unsecured loans & procedure of taking new unsecured loans and also accounting entries to be done in tally.

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7 Replies

Ashok (Industry) (416 Points)
Replied 14 April 2014

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.

shweta Agrawal (article) (46 Points)
Replied 14 April 2014

den wat entries will be passed in tally??

Ashok (Industry) (416 Points)
Replied 14 April 2014

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.

shweta Agrawal (article) (46 Points)
Replied 14 April 2014

instead of bank a/c can we use cash a/c for receiving new unsecured loans?

CA. Kapil Goel, DISA(ICAI) (cakapilgoel.wordpress.com) (2191 Points)
Replied 06 May 2014

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.