Friends,
Suppose I have applied for a housing loan for purchase of a residential property in say FY1213.
The Bank has sanctioned the same in the same year i.e PY 1213
I got the cheque from the bank on say 30 March , 2013.
Note : The cheque is in favour of the seller of the property.
I deposited the cheque in seller's bank a/c on 2nd April, 2013.
Registration procedures in respect of that property were not completed as on 31st March, 2013.
Now, my question is will the loan reflect in the balance sheet for the FY1213? What will be the entry?
if we say, loan should reflect in FY1213 as the loan was sanctioned in that year and the cheque from bank also was recd in FY1213, then which a/c to debit? You might say debit to advance given for property, but actually the advance was not given in that year.
Please, please guide me on this matter. I am really confused.
CAclubindia
