Representatives of the parties and the the documents placed on record, we discuss as to whether the loans are genuine or not as under: i). Ltd. 187 ITR 596. Dr Debtors 3,400 Cr Sales 3,400 Same as 4 and 6 above. 31. (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. 5. 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. Preview text When a check received from a receivable or customer on a date subsequent to its receipt is deposited into the bank account: When a check is received and is not deposited into the bank account on the same date, it is recorded in the cash book just like a normal cash receipt. - 2512210 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 2.Received cheque against sales. He further submitted that if the assessee received the amount by cheques and the payments were also made by cheques through assessee’s bankers, the creditors have given confirmation letters mentioning their income tax file number, the Assessing Officer was not justified to treat the said loans as income of the assessee from undisclosed sources and referred the decision of CIT vs. Sahibganj Electric Cables Pvt. find: (i) The monthly installment (ii) the amount of maturity. In respect of claim of loan of Rs.4,00,000/- from Smt. He relied on the decision of the Hon’ble Kolkata High Court in the case of CIT vs. United Commercial 85 Industrial Co. Pvt. In connection with the claim of loan from Smt. (d) A cheque for Rs. 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. 1,00,000/- and Rs.1,50,000/- were transferred to the account of the loan creditor from his family members accounts and earlier they deposited cash in their accounts before transferred to the account of the loan creditors. Mohan has a recurring deposit account in a bank for 2 years at 6% p.a. Maintained by V2Technosys.com, Appeal Number : I.T.A. (iv) Insurance premium paid directly by the bank Rs.800. Renudevi Makharia, it is stated that a copy of bank statement was furnished which shows that amount of Rs.4,00,000/- was received by Smt. Certain restrictions apply if you take a loan from friends or relatives It is also not in dispute that her income was only Rs.32,210/-. 4. 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. Definition of Short Term Bank Loan. Enter the date. (adsbygoogle = window.adsbygoogle || []).push({}); Credit He further submitted that he also explained the source of the said loan to the AO vide his letter dated 27/12/2006 copy placed at pages 61-62 of the paper book. 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. Thereafter the cheque was issued in favour of the assessee’s proprietary concern M/s Raj Sales on the same day i.e. Cheque received from Panna Lal. 1200 as interst at the time of maturity. 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. 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. 3 rd May : Cash deposited into bank 60,000 : 4 th May : Loan given to Bhuvan 20,000 : 4 th May : Paid cash to Veeru 20,000 : 5 th May : Paid to Veeru by cheque 15,000 : 5 th May : Cash received … The Assessing Officer has stated that in order to verify the genuineness of the loans, the assessee filed confirmations and the same have been obtained and placed on record. It further held 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. The credit records this liability in the balance sheet under the heading loan. when u went to withdraw the money the bank said i needed 2 forms of id and proof of my business. Dr Purchases 2,600 Cr Creditors 2,600 Same as 2 above. I believe check was returned to issuer. (this means 100,000 rupees - the rupee is the currency of Nepal, India, Pakistan and other countries) ... (Cheque received from ram but not deposited into the bank account) CHEQUE ENTRY by: ARUN KAUSIK LET ME TEACH YOU IN SIMPLE LANGUAGE. 48/2020-Customs (ADD), Dated: 30.12.2020, Notification  No. Angie received a $15,000 loan from the bank. To receive a loan the business will post the following double entry bookkeeping journal entry. The ld. We are of the considered view that in respect of said loan of Rs.1,00,000/- given by Shri Nalinbhai A.Shah the cases relied upon by ld. 750 Jan 20 Z became insolvent and 40 paise in a rupee could be received from his estate. 2, 00,000 to the supplier for Plant and Machinery. (iii). 25.000 Discounted a bill for 12,500 at 1% with bank s Bought goods by cheque ? DR submitted that on perusal of the bank statement it could be seen that all the loan creditors had meager balance before depositing the amount in their accounts and of giving loans to the assessee. Home > Other Long Term Debt > Receive a Loan Journal Entry. Copyright © TaxGuru. On the Account field drop-down, select the bank account where the loan funds will be deposited. Cr Bank 600 Same as 2 above except that this is a cash purchase, so our bank is decreasing (credit). Choose Loan Payable for the Detail Type; Enter a name for the account. AR further submitted that the said loans were repaid in subsequent assessment years by account payee cheques. Received payment of a loan of Rs 5000 and deposited Rs 3000 out of into bank 31 from MBA 505 at DeVry University, Keller Graduate School of Management How you can prove source of cash deposits to escape income tax scrutiny 4 min read. Hello i received a sba loan advance deposted into my bank account that i started online. Next, enter the “USD10, 000” as an opening balance. That the Assessing Officer submitted his remand report. 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. 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. 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. Renudevi is also palced at page 50 of the paper book evidencing that she received Rs.4,00,000/-from Rajkumar Sajjankumar by an account payee cheque which was deposited in her account on 27/02/2004 and thereafter the cheque was issued to the assessee. Then for the payment to the vendor allocate it to Fixed Assets. Click Save and close. No. 1. Dr Creditors 2,000 Cr Bank 1,900 Cr Discount received (income) 100 In this case we are receiving a discount. Lawyer's Assistant: What state are you in? 31. The purpose of cash and bank columns has been explained at the start of this article and the purpose of date, description, voucher number (VN) and posting reference (PR) columns has been explained in single column cash book article. We are hoping this will be released any day now. Click the Plus icon (+) Choose Bank Deposit. 12. Renudevi Makharia on the same day on which she issued cheque in favour of M/s Raj Sales of Rs.4,00,000/-. 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 respect of claim of loan of Rs.2,50,000/- from Shri Kirtibhai C. Shah, it is stated that prior to the issue of cheques in favour of assessee’s proprietary concern M/s Raj Sales, Rs. Bharati's cheque returned dishonoured June 28. M/s Raj Sales, Cash of Rs.1,50,000/- was deposited into the account on 27/03/2004 (four entries) and Rs.1,00,000/- was shown as transfer from the account of family members, who have deposited  cash in their accounts and the same was transferred to the account of the loan creditor and thereafter cheques were issued in favour of the assessee’s firm. Balance as per pass book 9,405] (a) Pass Book showed an overdraft of 15,000 on 30th June, 2012. Being aggrieved, assessee filed appeal before the First Appellate Authority. mohan deposited in a bank 6000 for 18 months at the rate of 10 pa interest compounded half yearly find the amount he received after 18 months - Mathematics - TopperLearning.com | q50wkr22 500. Received cheque against sales, when it deposited into bank on same day. Revenue Note: Revenues Reported on original application: Gross $97K, Costs $27K Net = $70K, Loan Approval Amount: Loan offer $34,500. 150 Required fields are marked *, Notice: It seems you have Javascript disabled in your Browser. It is further stated that the total income of the Shri Kirtibhai C. Shah for A.Y. Received check from a debtor Rs 100,000. Renudevi Makharia, the Assessing Officer has stated that she advanced loan of Rs.4,00,000/-. 25.000 Discounted a bill for 12,500 at 1% with bank s Bought goods by cheque ? Cheque received from Panna Lal. AR submitted that the addition of aggregate amount of Rs10,00,000/- made u/s 68 of the Income tax Act be deleted. He has stated that the claim of the assessee lacks credence. Representatives of the parties. Cheques Amounting To $4,290 Shown As Outstanding On The November Reconciliation Still Have Not Been Returned By The Bank. simple interst. 5,000 and deposited Rs. Bank Dr. Account Receivable Cr. 1,200 June 20. (this means 100,000 rupees - the rupee is the currency of Nepal, India, Pakistan and other countries) ... (Cheque received from ram but not deposited into the bank account) CHEQUE ENTRY by: ARUN KAUSIK LET ME TEACH YOU IN SIMPLE LANGUAGE. The ld. Received a draft from Mohan in full settlement and deposited it into Bank: 9,750: 5 : Purchased goods from Suresh of the list price of ₹ 8,000 at 20% trade discount and paid him by cheque. He further submitted that all the loan creditors were assessed to tax, hence their creditworthiness was established by the assessee. 10. (adsbygoogle = window.adsbygoogle || []).push({}); A separate loan account should be established in the balance sheet for each loan. Damyanti S. Jain , he has stated that she advanced loans of Rs.1,00,000/-(wrongly stated by the Assessing Officer Rs.2,50,000/-) to the assessee. Prepare bank reconciliation statement of Mohan on 30th June, 2012 with the following particulars: [Ans. 31. Received payment of a loan of Rs. 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. 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. I will appreciate any help with the below scenario: We invoiced about the customer for the parts on 10/07/2019. He further submitted that she received the said amount from an account payee cheque from her debtor and the said cheque was deposited in her account and thereafter the cheque was issued to the assessee and referred page 49 of the paper book which is a copy of the bank slip for depositing the cheque of Rs.4,00,000/- in the account of Smt Renudevi Makharia. 70,000 cash sales (of goods costing Rs. Three Column Cash Book from the following particulars Papere Three.co Cash in hand 4,000 and in bank? Think you can always dispute if somehow your parents deposited the cheque for on your behalf. In loan scams, con artists claim you need to give back money immediately as a step for building credit to obtain a bigger loan. Three Column Cash Book from the following particulars Papere Three.co Cash in hand 4,000 and in bank? In ground no. once it came in I transferred the monies to other account of mine in other banks. 500 became bankrupt and paid us 50 paisa in a rupee. The onus is on the assessee to prove the nature and source of the amount found credited in the books of the assessee. (iii) Cheque received and entered in cash book but not sent to bank Rs.1,200. In respect of loan from Shri Nalinbhai A Shah, ld. 4,00,000/- as  the said loan is genuine loan and the assessee has furnished the requisite documents in regard thereto. 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. On the other hand, the ld. iii). 50 Old Furniture Rs. On the other hand the ratio of the decisions of the Delhi High Court and the decision of the Hon’ble Allahabad High Court in cases (cited supra) apply. 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. 06/02 10AM $34,400 Deposited into my bank account. a)     Damyanti S Jain                 Rs.1,00,000/-, b)    Shri Nalinbhai A Shah     Rs.2,50,000/-, c)     Kirtibhai C Shah                Rs.2,50,000/-, d)    Renudevi Makharia         Rs.4,00,000/-, Total                                               Rs.10,00,000/-. Paid rent to landlord ‘Mohan’ by a cheque of Rs. He submitted that page no. The customer picked up the equipment the same day and made a payment as well on 10/07/2019. Thereafter the loan creditor issued cheques to M/s Raj Sales. (iv) Purchased goods worth Rs. Several small business owners didn't get money from 1st round of PPP; They were encouraged to reapply with different bank in 2nd round 30. In the Category dropdown, select Transfer from Bank, Credit Card, or Loan, select the EIDL loan account you just added, and then click Save. deposited into bank. 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. Damyanti S. Jain, there is no dispute to the fact that she issued cheque to the assessee and also confirmed of giving loan to the assessee. and also the application number from my sba application for them to release the funds. 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. CIT(A) has stated that the assessee filed a paper book and contended that necessary confirmations from the loan creditors were furnished before the Assessing Officer. Renudevi Makharia, we observe from the bank statement that she received the cheque and it was deposited in her account and thereafter loan was given to the assessee by account payee cheque. (c) Cheques deposited in bank but not credited Rs. On the facts and in the circumstances, we agree with ld. Damyanti S. Jain. 29. Therefore, the genuineness of the said transaction is not proved. The ld. That the assessee has established that the transaction is genuine and has established the creditworthiness of the loan creditor, in respect of giving loan of Rs.1,00,000/- to the assessee as there was a sufficient credit balance in the bank account of the loan creditor to give loan to the assessee. 50 Old Furniture Rs. DR are not applicable. 3,800. The ld. He further submitted that the copy of capital account of Smt. 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