Question

bank loan place in final accounts

Answer 1

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In final accounts the bank loan has the following treatments:

In Profit & Loss Account:
The interest charged bt the loan providing authority is written.

In Balance Sheet:

Bank loan has two positions, one is the current portion of the bank loan that is to be paid to the bank in the next year it comes under the head Current Liabilities. The other amount that has to be paid after one year comes under the head Non- Current Liabilities.

In Cashflow Statement:

The increase or decrease in bank loan is adjusted in the Financing Activity of the Cash Flow Statement.

Answer 2

Answer:

In final accounts the bank loan has the

following treatments:

In Profit & Loss Account:

The interest charged bt the loan

providing authority is written.

In Balance Sheet:

Bank loan has two positions, one is the

current portion of the bank loan that is

to be paid to the bank in the next year it

comes under the head Current Liabilities.

The other amount that has to be paid

after one year comes under the head

Non-Current Liabilities.

In Cashflow Statement:

The increase or decrease in bank loan is

adjusted in the Financing Activity of the

Cash Flow Statement.