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Bank loan entry

Abhishek Selvam O   28 September 2020

Abhishek Selvam O

 14 likes  347 points

| My Other Post

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?

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

prasad Nilugal
Sr . Accountant and GST Practitioner .  
 359 likes  5362 points

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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   12 October 2020

Kutub Hamid

 3 likes  39 points

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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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