Debt -the word is used in financial account as provision for bad debt. They don't use the term loan.

Debt -the word is used in financial account as provision for bad debt. They don't use the term loan.

You are forgetting when we prepare a Balance Sheet, we post few entries under the head "Secured Loans and Unsecured Loans".

Friends correct me if my explanation is wrong. I am writing the difference between debt and loan in terms of economics.
If a person takes loan and cannot repay it back for years after years, it becomes a debt. Debt is a loss which can't be recovered. Debts are also long term loans which is promised to pay but it may or may not be paid by the person. The best example of this is the loans taken by the farmers from money lenders. Unable to pay back loan, his generation keeps serving the money lender and finally his land and house is confiscated by the money lender.

Debts are neither loans nor taken from any one on demand. This is is one side of the balance sheet only. That can be in terms of money as well other assets. Whatever you owe to some one is debt and have to square it up. One is indebted unless the credit and debt sides are equal. Loans and debts are two different things.

Debts are neither loans nor taken from any one on demand. This is is one side of the balance sheet only. That can be in terms of money as well other assets. Whatever you owe to some one is debt and have to square it up. One is indebted unless the credit and debt sides are equal. Loans and debts are two different things.

If possible kindly give some example of this.
As far as I remember, loans can be secured or unsecured, shown in the B/S. All debts are deducted from Sundry debtors like bad debts, provision for bad debts, provision for doubtful debts.