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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!

Answers were Sorted based on User's Feedback



Hello, I am trying to record the journal entries for taking a loan and refinancing it into two n..

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

Hello, I am trying to record the journal entries for taking a loan and refinancing it into two n..

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

Hello, I am trying to record the journal entries for taking a loan and refinancing it into two n..

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

Hello, I am trying to record the journal entries for taking a loan and refinancing it into two n..

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

Hello, I am trying to record the journal entries for taking a loan and refinancing it into two n..

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

Hello, I am trying to record the journal entries for taking a loan and refinancing it into two n..

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

Hello, I am trying to record the journal entries for taking a loan and refinancing it into two n..

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

Hello, I am trying to record the journal entries for taking a loan and refinancing it into two n..

Answer / sankeerthana

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

Hello, I am trying to record the journal entries for taking a loan and refinancing it into two n..

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

Hello, I am trying to record the journal entries for taking a loan and refinancing it into two n..

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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