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Accounting enttry

minal (Student CA Final ) (157 Points)

18 June 2016  
A Proprietorship firm take a loan from bank. for bank loan bank open new account & credit loan amount in new a/c. now the question arises what is the entry for that transaction ??????????? bank A/c Dr. To _________________ what is the entry in case of loan repayment ??????????

 6 Replies

Senu Reddy (ca final) (291 Points)
Replied 18 June 2016

Bank a/c dr

to Bank Loan A/c..

Similarly while repayment its reverse of that entry to the extent of principal amount

2 Like

(Guest)

I think it would be a cash credit account, right?

Rammi_RP Rawat (Accountant ) (385 Points)
Replied 18 June 2016

At the time of loan credit entry will be 

Dr. Bank A/C .......

Cr. Bank Loan  A/C ......

Repayment Entry Will Be..... 

Dr. Bank Loan A/C ....

Dr. Interest On Bank Loan...

Cr. Bank A/C.........

 

 

1 Like

Gopi Rajput (Assistant Accountant) (31 Points)
Replied 19 June 2016

This is a contra entry. Bank account DR. To loan account.
1 Like

Jignesh (Student CA Final ) (40 Points)
Replied 21 June 2016

Hello,

Loan Taken

Bank A/c Dr.

   To Bank Loan A/c

(Being Entry for Loan taken & Money received in Bank Account

At the time of Repayment

Bank Loan A/c.(Principal Repayment) Dr.

Interest on Loan Account a/c. Dr.

             To Bank Account(Instalment Amount)

(Being Entry for EMi Repayment.)

Zoheb (Accountant Manager) (158 Points)
Replied 22 June 2016

Originally posted by : Gopi Rajput
This is a contra entry. Bank account DR. To loan account.

it is incorrect


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