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Loan on Accounts Receivables

Loan on Account Receivables is the part of small business loan. Following are its main conditions.

1. # Your bank can give you the loan on your account receivables or sundry debtors, you have to take money of your sold goods within 90 days.

2. # Your debtor must accept your assignment of getting loan. It means either the loan taker or his debtor will liable to pay the loan of bank on specific date. 


3. # Sometime, your all debtors will be liable for repayment of a loan. If you have take loan by making all account receivables as your collateral security. 


Accounting Affect After Taking Loan on Account Receivables


We have to record this loan like recording our other loan. With this, our liability will increase. If we have used only specific debtors as collateral security, then we will record all these debtors in the debtors account ( Collateral security). If we have taken loan from different bank, then we will also show the name of bank in ledger account such as Sham Debtor account ( Collateral security for loan from  ABC Bank).

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Accounting Education: Loan on Accounts Receivables
Loan on Accounts Receivables
Accounting Education
https://www.svtuition.org/2012/04/loan-on-accounts-receivables.html
https://www.svtuition.org/
https://www.svtuition.org/
https://www.svtuition.org/2012/04/loan-on-accounts-receivables.html
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