you purchase a machinary on a loan what is the joury entry for that and where w

you purchase a machinary on a loan what is the joury entry
for that and where will you show the the loan amount in
balance sheet and show the ledger account?

Question Posted / sundeep

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you purchase a machinary on a loan what is the joury entry for that and where will you show the the..

Answer / lokesh khintolia

First Part Answer........

Machinery A/c Dr. 10000.00
To Loan A/c 10000.00

Second Part Answer...........

If Loan Received from Bank than its show in secured Loan
Account under the liability Head.
If Loan Received from any friend or Family member than its
show in Unsecured Loan under the Liability Head......

Correct me if m Wrong......

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you purchase a machinary on a loan what is the joury entry for that and where will you show the the..

Answer / d. k. gupta

Machinery A/c Dr
To Loan A/c (who is issue Loan e.g. Bank Loan A/c
or,Ind,Partyname)

for ledger creation of Loan A.c under the group of Loans
Liability or secured loan or unsecured loan who is ur a/c
group select from them.

if u purchase machine on loan and payment as instalment
then u passed entry every month and any agreement of payment
you passed entry in books

Loans A/c Dr (Machinery Loan A/c)
To Bank or Cash A/c

(chq no-xxxx Being the cheque issue to Bank towards payment
of Machinery loan)