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Loan from relative

Mohammed Shahid Rahman (Partner) (143 Points)

08 July 2018

Hello,

I took a loan of Rs.50k from my mother in law last year. I could not repay back. My mother in law has forgiven the loan now. So what will be the account entry for it?

The other question is that last year (16-17) I quoted Rs.1500/- approx less in bank closing statement. Return submitted last year. On the base of that I prepared 17-18 and would like to correct the entry. Can i do that, if yes please let me know the entry.

What ledgers do I have to create and under what head in Tallly for above entries.

Thanks in advance.

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4 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14169 Points)
Replied 08 July 2018

Please clear your 2 qustion ?.

Mohammed Shahid Rahman (Partner) (143 Points)
Replied 08 July 2018

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

prasad Nilugal ( GST Practitioner & Accounts ) (14169 Points)
Replied 08 July 2018

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