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Loan A/c entry

Amit (Accounts ) (526 Points)

16 April 2021

On 8th April we open a overdraft account in bank , received amount on particulars account.

What will be journal entry?

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CMA Poornima Madhava (CMA) (13097 Points)
Replied 16 April 2021

If there is a transfer from a separate OD account to (say) a current account, then it would be a contra entry: Current A/c Dr To OD A/c

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CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 16 April 2021

Agree with poornima

Amit (Accounts ) (526 Points)
Replied 16 April 2021

We have opened new account with limit of 1 or 2 crore
no transfer from other account

CMA Poornima Madhava (CMA) (13097 Points)
Replied 16 April 2021

Just create a new account under loans and account transactions just like any other bank accounts.

CA Shivani Singhal (Chartered Accountant) (49 Points)
Replied 17 April 2021

Bank overdraft limit is an off balance sheet item. Accounting entry would be made when the limit is used by making payment from that bank account, amount withdraw n or any amount is deposited to account.

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