Entry and effect

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 .

Thanks