A Creditor's payment is pending for more than 3 years and they are charging interest now. Is it possible to reclassify them as long term debt?
If yes, how can we do that? what journal entry to pass in order to reclassify them?
Miss Riya (working) (27 Points)
18 April 2023A Creditor's payment is pending for more than 3 years and they are charging interest now. Is it possible to reclassify them as long term debt?
If yes, how can we do that? what journal entry to pass in order to reclassify them?
sabyasachi mukherjee
(26265 Points)
Replied 19 April 2023
Miss Riya
(working)
(27 Points)
Replied 19 April 2023
Sir what exactly do you mean by Clarify them ?
NARENDRA
(ACCOUNTS MANAGER)
(1562 Points)
Replied 10 May 2023
If your creditors charge interest ...... & if you are accepted then you should debit to Interest & credit to the party .........
CAclubindia
