Question

what is the Journal enrty for bank loan collected for ₹30000​

Answer 1

Answer:

The entry depends on the type and term of the loan.

For loans with principal due within one year, the loan would be classified as a current liability. The entry would be:

Dr - Cash (for proceeds of loan)

Cr - Loans payable (to establish liability)

For loans that mature beyond one year, the entry would be the same but the classification would be Long Term Liabilities.

If portions of the loan are due this year and the remainder due in the future, you would have:

Dr - Cash

CR - Loans Payable (Current Liabilities) for the portion due in the current year

CR - Loans Payable (Long Term Liabilities) for the later portion.

Good luck.