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Abhishek Selvam O   28 September 2020

Bank loan entry

Loan borrowed for 500000 from icici entire amount has been paid and one installment has been paid late for Rs.500 charged by bank for this which account should I debit is it icici bank or some other account if I debit icici bank then it shows debit balance?

 2 Replies

prasad  Nilugal

prasad Nilugal (Sr . Accountant and GST Practitioner . )     28 September 2020

your  1st  entry  for  borrowed  loan  is 

1)   Bank     A/c      Dr                                     500000/- 

      Loan  form  ICICI  Bank   A/c      Cr                               500000/- 

(  Loan  from  ICICI  Bank  )   

Loan A/c  will be  under secured  loan  Liability  side of balance sheet 


2)    When you repay the same amount  with  Bank charges 

       Loan from ICICI  bank     A/c       Dr                500000/- 

       Bank   Charges               A/c        Dr                      500/- 

       To  Bank                          A/c        Cr                                               500500/- 

(   Repayment of  loan along with bank  charges ) 

Kutub Hamid

Kutub Hamid   12 October 2020

If want to reflect this charges in Loan A/c
Then Pass a JV first
Bank/Loan charges A/c Dr. ₹500
To ICICi Loan A/c Rs. 5000

so, now u may have this rs. 500 outstanding bal. in loan A/c
To nullify the same,
U may have paid Rs. 500 in cash or thru other bank A/c so, just pass this entry

Icici laon A/c Dr. rs. 500
To Cash/ bank rs. 500

Doneee.... (if done this way u can see the extra charges by IcICi bank loan A/c, and also expense is booked)
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