Hello,
I am trying to record the journal entries for taking a loan
and refinancing it into two new loans. How would I show the
closing loan and the opening of two new loans?
Thank you for your help!
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Answer / ca.bharat agarwal
FOR TAKING THE LOAN FROM BANK ENTRY WOULD BE :-
BANK A/C DR.
TO BANK LOAN A/C
AND REFINENCING IT IN TO NEW TWO LOAN :-
OLD BAMK LOAN A/C DR.
TO NEW BANK LOAN 1 A/C
TO NEW BANK LOAN 2 A/C
ONLY TWO NEW LOAN WILL BE SHOWN IN THE LIABILITIES SIDE OF
B/S.
| Is This Answer Correct ? | 27 Yes | 5 No |
Answer / nayan chauhan
If loan taken from bank suppose 1 lakh @ 10% interest payable.
the accounting entries will be as shown.
1.Loan taken from bank.
Bank A/c dr 100000
To Hdfc bank loan A/c 100000
2 Interest Payable.
Interest on loan A/c dr 6000
To Hdfc bank loan a/c 6000
3 Interest paid entry.
Hdfc bank loan a/c dr 6000
To bank a/c 6000
4 Loan repaid entry will be.
Hdfc bank Loan a/c dr 100000
To bank A/c 100000
interest will not charge on the above entry, if loan repaid on the very last due date of interest payable.
| Is This Answer Correct ? | 17 Yes | 2 No |
Answer / taradheeraj
Whenever u take loan whether from Bank Or Person, suppose lender as a person
Create ledger (name of lender under loans and liability)
If Cash is taken from lender
JOurnal is
Cash\Bank a\c Dr
Name of lender Cr
Narration: Being loan taken from (name of lender)
Here, (liability increases in B\S (loans and liability)
While paying :
Journal is : Name of lender Dr
Cash\Bank A\c Cr
Narration: Being loans paid.
Here Liability in b\s decreases
| Is This Answer Correct ? | 15 Yes | 1 No |
Answer / d.c. bansal
WHILE TAKING NEW LOAN
Bank A/c Dr
To Loan a/c
WHILE GIVING LOAN
Loan to Party 1 A/c Dr
To Bank
Loan to Party 2 A/c Dr
To Bank
| Is This Answer Correct ? | 6 Yes | 3 No |
Answer / anjana
bank a/c dr
To loan a/c
Loan a/c dr
To new loan 1
Loan a/c dr
To new loan 2
| Is This Answer Correct ? | 8 Yes | 8 No |
Answer / nayan chauhan
For taking the loan from bank entry would be :-
Bank a/c dr.
To bank loan a/c
And refinancing it in to new two loan :-
Old bamk loan a/c dr.
To new bank loan 1 a/c
To new bank loan 2 a/c
Only two new loan will be shown in the liabilities side of
B/s.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / ankit
While Receiving Loan from Bank , Journal Entry Would be :
Bank Account Debit
Lender's Loan Account Credit
2. When Borrower is responsible for paying Interest on Loan
Interest Account Debit
Interest on Loan Payable Account Credit
3. When Borrower pays the interest to Lender
Interest on Loan Payable Account Debit
Bank Account Credit
4. When Borrower repays his loan.
(a) If there is no interest liability on loan.
Lender's Loan Account Debit
Bank Account Credit
(b) If there is any interest liability on loan
(i)
Interest on Loan Payable Account Debit
Lender's Loan Account Credit
(ii)
Lender's Loan Account Debit ( Principle + Payable Interest)
Bank Account Credit
| Is This Answer Correct ? | 0 Yes | 0 No |
Mr Iyyanar your entry is wrong. According to you Loan was
given thru your Bank. The right entries are
1. Bank current a/c Dr
To Bank CC a/c
(Being loan taken from Bank)
2. Disbursment or refinancing of loans
Loan A a/c Dr
Loan B a/c Dr
To Bank current a/c
(Being refinacing of loan amount )
Sankeerthanaannavaram@yahoo.in
www.therealaccountants.com
| Is This Answer Correct ? | 6 Yes | 8 No |
Answer / krishna chaitanya
bank ac dr
to loan acc
loan ac 1 ac dr
to bank ac
loan ac 2 ac
to bank ac
| Is This Answer Correct ? | 4 Yes | 9 No |
Answer / iyyanar
For taken loan from bank
1)Loan A/c Dr.
To Bank A/c
For Setteling the old loan
2)Bank A/c Dr.
To Loan A/C
For taking new loan
New Loan A/c
To Bank A/c
| Is This Answer Correct ? | 4 Yes | 13 No |
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