Entry in balance sheet for loan taken on fixed deposit



A firm has a Fixed Deposit of Rs 20,00,000.00, on which they have taken a loan of Rs 16,00,000.00

In the Balance Sheet, do we have to show

Asset of 20,00,000.00 and Liability of 16,00,000.00, or

Asset of 4,00,000.00 and Liabilty of 16,00,000.00 (since 16,00,000.00 loan is taken and is no longer an asset) 

 
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Asset of Rs. 20,00,000 and liability of Rs. 16,00,000 will be shown in the Balance Sheet

 

 
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Sir, But what about interest paid on such deposits  or received  against the same how it will be accounted

 
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accountant

both asset and liability will be shown in the balance sheet

 
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