Adjustment entries allowed

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

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.