Taken loan of Rs. 1050000 from city financial a non financial company & they debited Rs. 35000/- as processing fees & paid net cheque to us,we deposited it in cash credit A/C.

This question was asked in Term Loan Journal Entries (EMI Entries)

seema ahire

Sept. 29, 2016, 2:44 p.m.

Answers!

Davneet Singh

Sept. 29, 2016, 4:04 p.m.

Hi Seema,the entry is

Cash Credit A/c Dr 1015000

Bank Charges A/c DR 35000

To City Financial LOAN A/c 1050000

(City Financial Loan is Loans (Liabiity),,Bank Charges is Indirect Expenses and Cash Credit is Bank OD/CC A/c)

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