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Kollipara Sundaraiah

B.com

3025 Points Posted on 08 February 2021

I.t. Assess un secured loan and Sundry debtor(cash loan) outstanding ledger balance as on 31-03-20 in books.
unsecured loan name :Mr.A Rs:4 lacs.
sundry debtors (cash loan) name :Mr.B Rs: 5 lacs.
question:
unsecured loan balance amount(Mr.A) transferred to Sundry debtor(Mr.B) account adjustment accounting entries passed in books allowed in I.t. act.

Replies (2)

Quick Summary

This discussion explores the possibility of transferring an unsecured loan balance (Mr. A) to a sundry debtor account (Mr. B) within accounting books. While the Indian Companies Act 2013 doesn't define 'loan', the consensus suggests this transfer is permissible, provided it's supported by a loan agreement and properly documented. Guidance is offered regarding potential legal frameworks like The Usurious Loans Act, 1918, and restrictions on cash repayments under IT Sections 269SS & 269T.

yasaswi gomes

My grammar is 💯 good I

7306 Points Posted on 08 February 2021

I’m not sure but I think it is possible. Before that, make sure, you document the transfer of hands and add it to debtors. If anything goes wrong, I believe this act in India will help you - THE USURIOUS LOANS ACT, 1918

yasaswi gomes

My grammar is 💯 good I

7306 Points Posted on 08 February 2021

The Indian companies act 2013 does not define loan. No information available regarding transfer of loans online apart from IT Section 269SS & 269T which prohibits loan repayments via cash equal or more than 20,000₹. So yes u can proceed further as the transfer of unsecured loans depends upon the loan agreement.