Entry in balance sheet for loan taken on fixed deposit

A/c entries 2542 views 2 replies

Accountant

53 Points Joined April 2009

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)

Replies (2)

43 Points Joined April 2017

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

ACCOUNTANT

39 Points Joined January 2014

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

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