05 May 2016
A loan worth Rs. 20 crore is now payable in 10 installments worth rs 50 lakh each. The remaining 15 crores are to be written off as liability no longer payable. the first EMi of 50 lakh is payable on 21.03.16, the last being payable on 21.12.16. Should the complete loan be written off in march itself since the settlement has been arrived at or it should be written off proportionately ? Also the bank has said if we do not write off complete 15 crores in march then we will have to pay 6 crores instead of 5. Please suggest the appropriate accounting treatment
06 May 2016
you have to write off when bank make the wtittne off and also check the term & condition of the this written off . due to may possible its will be reversed by hte bank in future for any event happan. pls take care in this regard. with out taking paper in this regard, dont take action on that.
CAclubindia
