Suggest me how to pass entries

I have just started business in proprietor ship firm but I have no money so I borrow money from my friend in cash Rs. 100000 (one lac only) on interest how to pass entry pls tell me & also interest paid entry
Replies (3)

A) When money borrowed from friend --

Cash or Bank A/c             Dr 100000

    To Loan from Friend (Mr. A)            100000

(Being loan taken from friend)

B) Introducing capital to the new business --

Cash A/c                         Dr      100000

    To Capital A/c

(Being business started with cash)

C) Every time When paying the borrowed money with interest to friend --

Loan from Friend (Mr. A)      Dr.  10000

Interest on loan A/c             Dr.    400 (supposed)

   To Cash or Bank A/c

(Being part payment of loan paid to Mr. A)

 

 

 

It's legal that I can take loan from my friend in cash rs. 100000 one lac
Yes, it's absolutely legal,,,

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 26 August 2026
CA Article Assistant/CA Drop Out/Accounts Executive

PARV & Co.

New Delhi

CA Inter

View Details
Company
Featured 19 August 2026
Chartered Accountant

apricus india

Pune

CA

View Details
Company
19 August 2026
PAID ARTCILE ASSISTANT

My Legal Tax Consultants Pvt. Ltd.

Noida

CA Inter

View Details
Company
08 September 2026
Semi-Qualified Assitant

Subrahmanyam & Sivudu CA Firm

Hyderabad

CA Inter

View Details
Company
24 August 2026
Semi-Qualified CA/CA Finalist - Tax, GST, Audit & Accounts

Bharat Shah & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 24 August 2026
Article Assistant

M/s.S.G.Salecha & Co.

Mumbai

CA Inter

View Details
Company
17 August 2026
Chartered Accountant with US GAAP Experience

Austin Med Solutions Pvt Ltd

Bengaluru

CA

View Details
Company
04 September 2026
CA inter Or ca finalist

A Jaiswal and company

Lucknow

CA Final

View Details