Entry and effect

Lol (1 Points)

24 November 2021

Sun Enterprises has given loan to Mr Preet for Rs. 3 Lakhs. Discuss by passing a journal entry how M/s Sun enterprise and Mr Preet will record the transaction in their books. Discuss how the amount will be reflected in the Balance sheet of both the parties

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prasad Nilugal (Sr . Accountant and GST Practitioner . ) (7529 Points)
Replied 24 November 2021

In the books of Sun Enterprise

Loan to preet A/c Dr 300000/-
To Bank A/c Cr 300000/-
( Loan given to preet )

Note -Loan to preet A/c will be under Loans and Advance , Asset side Balance sheet .

In the books of preet

Bank A/c Dr 300000/
To Sun Enterprise A/c Cr 300000/
( Being loan taken from Sun Enterprise )

Note -Sun Enterprise A/c will be Loans and Borrowings ,Liability , side Balance sheet .

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