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loans & advances (liability)

Ramit (Accountant) (142 Points)

13 December 2018

In tally under the head loans & advances (liability) the amount is standing 30000/- so it will increase my income tax?

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4 Replies

Srinivasa G (7 Points)
Replied 13 December 2018

If it is not payable and written off, then you should offer it to tax

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Anoopa H P (Member of ICAI CS Executive) (192 Points)
Replied 13 December 2018

It is balance sheet item. It will not increase your income unless written off.

Ramit (Accountant) (142 Points)
Replied 13 December 2018

Sir if the gst has been paid by my friend's saving account so in tally i will show him under loans and advances (liability) in order to write off duties & taxes by doing payble entry & adjustment entry and after that i will pay him cash to write off loans and advances. Is it correct?

RAJA P M ("Do the Right Thing...!!!") (128111 Points)
Replied 14 December 2018

Yes... You are correct.

After adjustment of Your GST Tax Details just pass a journal entry as your friend name to Tax liability.
You can show friend name & amount under liability head.
At the time of repay the amount just passed a payment entry then it will tallied.

1 Like