3,000 out of it into bank. The ld. We observe that prior to the said deposit, there was only a balance of Rs.3,500/- in the said account and thereafter also there is no transaction of deposit/withdrawal save and except the transfer of two amounts of Rs. 40,000 for cash and Rs. 2,30,000 Plant and Machinery Purchased by paying Rs. 150 Jan 12 Cheque received from Z deposited into bank Jan 15 Cheque received from Y dishonoured Jan 16 Cash sales Rs. We agree with the ld. The amount recorded is termed the loan principal. Another double entry bookkeeping example for you to discover. Definition of Short Term Bank Loan. Hello i received a sba loan advance deposted into my bank account that i started online. Therefore, we uphold the order of the ld. Home > Other Long Term Debt > Receive a Loan Journal Entry. Being aggrieved, assessee filed appeal before the First Appellate Authority. Updated: 09 Dec 2019, 02:09 PM IST Gautam Nayak. 1200 as interest at the time of maturity, find the monthly instalment (in Rs. He further submitted that the copy of the statement of bank summary was also filed before the Assessing Officer along with balance sheet giving the details of the loans of the loan creditors, copies placed at pages 63-64 of the paper book respectively. However, in respect of loan of Rs.1,00,000/- which was given to the assessee on 29/03/2004, we observe that the said loan was given by Shri Nalinbahi A. Shah to the assessee after transferring of two amounts of Rs.50,000/- from another account and therefore the assessee cannot be expected to go into the origin of origin of the transfer of the said amount in the account of the loan creditor from another account to establish the genuineness of the loan transaction. AR referred page 53 of the paper book which is a copy of the confirmation letter dated 29/12/2006, addressed to the Assessing Officer pursuant to notice issued u/s 133(6) of the Act confirming giving loan of Rs.2,50,000/- to the assessee. b)    In respect of loan from Smt. DR that merely because the transaction has taken place by way of an account payee cheque, does not establish the creditworthiness of the loan creditor Smt. 48/2020-Customs (ADD), Dated: 30.12.2020, Notification  No. (c) Cheques deposited in bank but not credited Rs. I have never received any acknowledgement for the - emails I sent, I do not wish to speak to this company other than in writing and they have never sent me a single statement in the mail. Three Column Cash Book from the following particulars Papere Three.co Cash in hand 4,000 and in bank? On the Account field drop-down, select the bank account where the loan funds will be deposited. Renudevi Makharia on the same day on which she issued cheque in favour of M/s Raj Sales of Rs.4,00,000/-. Received a cheque from Bharati, discount allowed Rs 150. Click hereto get an answer to your question ️ Mohan has a recurring deposit account in a bank for 2 years at 6% p.a. All Rights Reserved. 12,000 deposited in bank Jan 16 Amount due to Ajay paid by cheque Jan 18 Old Newspaper sold Rs. In the Category dropdown, select Transfer from Bank, Credit Card, or Loan, select the EIDL loan account you just added, and then click Save. Ltd. 115 ITR 408. Hence, genuineness of the said loan and creditworthiness of Shri Nalinbhai A. Shah could not be proved. 12,000 deposited in bank Jan 16 Amount due to Ajay paid by cheque Jan 18 Old Newspaper sold Rs. In respect of claim of loan from Shri Nalinbhai A. Shah of Rs.2,50,000/-, we observe that on perusal of the bank statement placed at page 58 of the paper book that three amounts of Rs.49,000/- each were deposited in the bank account of the loan creditor on 27/03/2004 and on the same day, cheque of Rs.1,50,000/-was issued to the assessee. In respect of claim of loan from Shri Kantibhai C. Shah of Rs.2,50,000/-, we observe that the said loan was given to the assessee note out of the cheque deposited in his bank account by his  loan debtors, as is observed from the bank statement placed at page 63-65 of the paper book. Revenue Note: Revenues Reported on original application: Gross $97K, Costs $27K Net = $70K, Loan Approval Amount: Loan offer $34,500. AR reiterated the above facts. Four days after depositing the check, the proceeds were withdrawn from my account by my bank without my knowledge. He further submitted that the assessee is not required to prove/to establish source of source of the loan creditors and to substantiate his submission claim placed reliance on the following cases. Then for the payment to the vendor allocate it to Fixed Assets. (1) In respect of claim of loan from Damyanti S. Jain, it is stated that the cash of Rs.1,00,000/-was deposited in her bank account on 08/05/2003 and out of the cash deposit amount of Rs.1,00,000/- cheques were issued to assessee’s proprietary concern M/s Raj Sales on 09.05.2003. Damyanti S. Jain for A.Y. Interest is charged starting the day the loan is issued. He further submitted that the creditors are not men of sufficient means to advance loan to the assessee and therefore their creditworthiness could not be proved. 150 It is a fact that the assessee is not required to prove the source of source of the amount found credited in the accounts of loan creditors as held by the Hon’ble Delhi High Court in the case of Dwarik Dwarikadhish Investment (P.) Ltd. (supra) and CIT vs. Diamond Products Ltd. (supra). (b) A cheque of 200 was deposited in bank but not recorded in Cash Book. Received check from a debtor Rs 100,000. Hello i received a sba loan advance deposted into my bank account that i started online. For the Account, select the bank account the loan proceeds were deposited into. Revenue Note: Revenues Reported on original application: Gross $97K, Costs $27K Net = $70K, Loan Approval Amount: Loan offer $34,500. Mohan has a recurring deposit account in a bank for 2 years at 6% p.a. Cash has been received by the business and deposited into its bank account. Decision of Hon’ble Bombay High Court in the case of Orient Trading Company Ltd. vs. CIT 49 ITR 723. b). Thereafter the cheque was issued in favour of the assessee’s proprietary concern M/s Raj Sales on the same day i.e. If you received the money from the lender and deposited into your actual bank account, then the Bank Deposit transaction s/be to the actual bank account, and allocate it to the loan account. Click Save and close. (adsbygoogle = window.adsbygoogle || []).push({}); A separate loan account should be established in the balance sheet for each loan. 25.000 Discounted a bill for 12,500 at 1% with bank s Bought goods by cheque ? 530 by mistake. Lawyer's Assistant: What state are you in? At this point, we still do not have the final guidance released on the loan forgiveness rules. 25.000 Discounted a bill for 12,500 at 1% with bank s Bought goods by cheque ? The ld. 45,000 on account. Bank reconc statement AMP-Chapter-08 Maq winter 07 accttheory mia-pdf BOOK Keeping 1 - Lecture notes 5-8 Lecture 1 - econometric problems Special Summit Topics - Lecture notes 2. The debit records the increase in the cash balance in the balance sheet of the business. In respect of claim of loan of Rs.4,00,000/- from Smt. The Hon’ble Allahabad High Court has also held in the case of Zafa Ahmad Khan & Co. vs. CIT  [2013 30 taxmann.com 267] that the assessee cannot be asked to prove the source of source or the origin or origin. 9. Email: admin@double-entry-bookkeeping.com. 4.Checque dishonoured by the bank, Account Receivable Dr. Bank Cr 30,000 cash immediately. In respect of loan from Shri Nalinbhai A Shah, ld. Note: I Never asked any questions or spoke to Loan officer, all notifications received through email. Dr Debtors 3,400 Cr Sales 3,400 Same as 4 and 6 above. CIT(A) has stated that copy of the said remand report was communicated to the assessee and the assessee reiterated that he had filed requisite confirmations of the loans given to the assessee and all the loan creditors are filing returns of income. Download the latest available release of our FREE Simple Bookkeeping Spreadsheet by subscribing to our mailing list. find: (i) The monthly installment (ii) the amount of maturity. 300. Since, the assessee has established that there was sufficient balance in the account of Shri Kirtibhai C.Shah to give loan of Rs.2,50,000/- to the assessee, the assessee has established not only the identity of the loan creditor but also the genuineness of the transactions. My loan was open less than - months and by my calculations ( based on future date and total payments ) my total interest paid for a 60 day loan of $1200.00 would be $460.00. In connection with the claim of loan from Smt. (adsbygoogle = window.adsbygoogle || []).push({}); Credit Angie received a $15,000 loan from the bank. Related Studylists. CIT(A) has stated that creditworthiness of the loan creditors is not proved and accordingly he has confirmed the action of the Assessing Officer. (3). In another case of a creditor (Kirtibhai C. Shah) equivalent amounts were transferred from family member’s bank account, who deposited cash in their accounts and in the case of another creditor (Smt Renudevi Makharia) equivalent amount was transferred from other account immediately preceding to issuance of cheque of equivalent amount to the assessee. Hence, assessee is in further appeal before the Tribunal. 29.03.2004. On endorsement of cheque to the third party the cash column must be reduced so that it gets recorded in the cash column on the credit side of the cash book. Hence, we delete the said addition of Rs. In respect of claim of loan of 4,00,000/- from Smt. He has stated that the claim of the assessee lacks credence. ... Then I would "make a deposit" directly in the deposit form to the "Cash" account to record the money received indirectly from the financier (received … There is no dispute to the fact that the assessee is required to establish not only the identity of the loan creditors but also to prove genuineness of the loan transactions as well as creditworthiness of the loan creditors. once it came in I transferred the monies to other account of mine in other banks. Hi , My father died before 12 years and had given cash of 11 Lac to me, however I have deposited that cash before 3 years in the Bank (saving account). Question: The Company Has Received A $3,000 Loan From The Bank That Was Deposited Into Its Bank Account But Was Not Recorded In The Company Records. Choose Loan Payable for the Detail Type; Enter a name for the account. Since no documentary evidence in respect of payment of loan of Rs.4,00,000/- is filed, he treated it as income of the assessee u/s 68 of the Income-tax Act. In view of above we confirm the addition of Rs.1,50,000/- out of the loan of Rs.2,50,000/- given by Shri Nalinbhai A. Shah to the assessee and delete the balance amount of Rs.1,00,000/-. In the remand report, the Assessing Officer stated that loans were not satisfactorily explained by the assessee. The ld. The onus is on the assessee to prove the nature and source of the amount found credited in the books of the assessee. 15,000; Out of this amount Rs. Select the lender as the vendor, you'll need to enter two lines. 3. After 6 years, she owes the bank $5000 in interest. 500 became bankrupt and paid us 50 paisa in a rupee. He has stated that in the absence of details of cash deposited, the same is treated as income of the assessee u/s 68 of the Income-tax Act. The accounting equation, Assets = Liabilities + Owners Equity means that the total assets of the business are always equal to the total liabilities plus the equity of the business This is true at any time and applies to each transaction. proprietary concern M/s Raj sales, Rs.1,00,000/- and Rs.1,50,000/- were transferred to the account from the accounts of family members of the creditors, who deposited cash in their accounts and the same were transferred to the account to the loan creditors and thereafter cheques were issued in favour of M/s Raj Sales. 43 to 44 is the copy of bank statement evidencing that the said loan was taken by the assessee by an account payee cheque. Therefore, the genuineness of the said transaction is not proved. DR are not applicable. I received a disaster relief loan from SBA they deposited into my checking account at Chase and now Chase has frozen my account because they said the money should have been deposited into my business account I got my business license an EIN number but Chase is fraud department still won't release my money what do I do. Prepare a Bank Reconciliation Statement as on 30.09.2013 from the following particulars: (i) Bank Balance as per passbook Rs.10,000 (ii) Cheque deposited into bank but no entry was passed in the cash book Rs.500. It is further stated in the remand report that Shri Nalinbhai A. Shah filed a return of income for A.Y. Click hereto get an answer to your question ️ Uolt llas veen under-cast by 100. PPP policies from Chase Bank and PayPal to loan applicants suggest applying with another lender. Oct. 25 Withdrew from bank for personal expenses 3,000 Oct. 27 Sold goods for ₹ 11,000 plus CGST and SGST @ 6% against cash Oct. 28 Received cheque for goods sold for ₹ 9,000 plus CGST and SGST @ 6% each Oct. 29 Received repayment of a loan of ₹ 5,000 and deposited₹ 3,000 out of it The solution can be represented as follows 8264 and 8297, who deposited cash in their accounts on 29/03/2004 and transferred that amount to the account of the loan creditor. The Hon’ble Kerala High Court in the case of ITO vs. Diza Holding (P) Ltd. (supra) has held that furnishing of particulars is not enough and the payment by way of account payee cheque is also not conclusive. That on perusal of bank statement, it is seen that she deposited in cash of Rs.1,00,000/- prior to issue of cheque in favour of M/s Raj Sales, proprietorship firm of the assessee. Considering the above facts and material on record, we hold that the assessee has established not only the creditworthiness and identity of the said loan creditor Smt. when u went to withdraw the money the bank said i needed 2 forms of id and proof of my business. Update: On Aug. 20, 2020, the Small Business Association (SBA), which administers the Paycheck Protection Program (PPP), released data updated through Aug. … DR that merely because the transactions have taken place through banking channels, is not sufficient to establish that the loans taken by the assessee are genuine. I did not supply any Tax records at all. Received three months post dated cheque of ₹ 20,000 from Raj and deposited in the bank on the same day, discounted from bank paying discounting charges ₹ 750: March 18: Received cheque from Deepak for ₹ 5,000 (not banked), allowed discount ₹ 200: March 20: Cheque received from Deepak deposited in Bank… He further submitted that the assessee paid interest on the said loans and the said interest was allowed by the department in the assessments made u/s 143(3) of the Act. Further in respect of Loan received by the Assessee from Loaner out of loan received by the Loaner it was held that assessee cannot be asked to prove the source of source or the origin or origin. AR referred page 58 of the paper book which is a copy of the bank statement and submitted that the said loan was given by account payee cheque. learning site Notes DONE. In respect of loan from Shri Kirtibhai C Shah, the ld. 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