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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Accounting entry of unsecured loans
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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.
den wat entries will be passed in tally??
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.
instead of bank a/c can we use cash a/c for receiving new unsecured loans?
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
What entry type should i choose.
either it should be a contra or receipt and payment or journal. please guide me for Accounting.
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