Loan from relative

Please clear your 2  qustion ?.

Hello

Thanks for your reply.

My 2nd question is :

IN the year 16-17 my bank closing balance was 20000 actually but in error i showed 18500 and did not notice this till todays date. The return for 16-17 was submitted last July I guess. My balance sheet of 1718 was prepared taking into account the opening balance as 18500. I have not filed return for 1718 yet. Would like to recity the error which I have done.

Thanks

1)  for 1 qustion J.E  will  be 

      Loan  A/c  Dr                 50000

      Loan  written off A/c  Cr                   50000

( Being unsecured  loan  waive by Mother in law ) 

Loan  written off  is under  Indirect  Income   under profit and loss A/c 

2)  for 2nd qustion I would like inform you that   Bank reconciliation must  have done every month  and at the end of the  year 2016-17 . please inform about  Bank reconciliation  for the year 2016-17

Hello Prasad,

Thanks so much for the help.

Regards