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Term loan

Accountancy

The attached image is Notes to Accounts of Illustration 8 of Unit 1 of chapter 4 of paper 1 Here, how the LOAN FROM STATE FINANCIAL CORPORATION is identified as Term loan...?? Will u please clarify this doubt.? It is not mentioned in question about term loan...

IMG20210220130929.jpg

James Js

James Js

CA Inter

1K+

20-Feb-21 13:13

310

Answers (10)

Best Answer

Generally loans from financial institutions against hypothecation of fixed assets are for a specific term.


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

20-Feb-21 13:43

CA Suraj Lakhotia Admin

Generally loans from financial institutions against hypothecation of fixed assets are for a specific term.

Can we classify all loans against hypothecation as Term loans ??


Thread Starter

James Js

James Js

CA Inter

1K+

20-Feb-21 13:49

It could be working capital loan as well. If say its against stock.


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

20-Feb-21 13:49

CA Suraj Lakhotia Admin

It could be working capital loan as well. If say its against stock.

So finally to say,.... If Hypothecation against fixed assets is classified as Term loans And if Hypothecation against stock is Working capital loan


Thread Starter

James Js

James Js

CA Inter

1K+

20-Feb-21 13:53

Thread Starter

James Js

Am i right??

Generally yes.


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

20-Feb-21 14:08

CA Suraj Lakhotia Admin

Generally yes.

Thank You sir


Thread Starter

James Js

James Js

CA Inter

1K+

20-Feb-21 15:03

How to calculate Basic pay , I didn't understand the sentence i.e.scale of rs 20000-1000-30000

3153dc75-717f-41d5-8058-f25f13f3de3e.jpg

Kumar G

Kumar G

CA Final

12K+

20-Feb-21 19:43

Kumar G

How to calculate Basic pay , I didn't understand the sentence i.e.scale of rs 20000-1000-30000

Starting basic pay 20,000 every year increment 1,000 till basic pay reaches 30,000


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

21-Feb-21 13:03

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