unsecured loan is shown in books of wife in name of husband, the husband is now dead, what ll be the treatment of that loan in wife's book of accounts?
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Tax treatment
Replies (21)
As per me the loan will be recorded in the name of legal heir in the books of wife
SIR, WHAT IF WIFE IS THE ONLY LEGAL HEIR??
Agree with Mr.Manish
WHAT ENTRY WOULD BE PASSED IN THE BOOKS TO GIVE EFFECT TO THIS TRANSACTION?
1st you will transfer all the asset & liability of husband in wife books and than you should write it off by passing a journal entey
If this is a asset-Writing it off might cause the wife to pay tax on such income, which would have already been paid by her husband. Its better to show it as a repayment.
IT IS AN UNSECURED LOAN, I.E., IN CASH
Asset or liability?
ASHIWINI SIR, CAPITAL A/C IS BE CREDITED BY SAME ACCOUNT?
HUSBAND'S LOAN A/C DR.
TO CAPITAL A/C
??
AN LIABILITY
As per me the entry will be
Husband's Loan a/c DR
To Wife's loan (i.e. the
Husband's Loan a/c DR
To Wife's loan (i.e. the
HOW WILL THAT BE POSSIBLE? LOAN FROM SELF IN HER BOOKS?
Loan a/c debit
To cash/bank.
Withdraw or tranfer the money
To cash/bank.
Withdraw or tranfer the money
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