banner_ad

Accounting treatment for reversal of provision of liability

This query is : Resolved 
Profile Image

Profile Image

(Querist)
21 September 2016 Dear All

The company bought the building 6 years ago on loan. For that provision for liability was created in the same year.
Depreciation was started to claim on yearly basis. But as on date still the loan was not repaid. Now I want to reverse the provision for non repayment because due to some circumstances no need of repay that loan amount.
Kindly someone guide me the accounting treatment.
Profile Image

Sandeep Dharar

Profile Image

Sandeep Dharar (Expert)
22 September 2016 Dear Gayathri
Please elaborate the circumstances for non repayment of loan, coz there may b some thing for which the bank/financial institution is not demanding their money back(with interest).
Profile Image

CA Amrita Chattopadhyay

Profile Image

CA Amrita Chattopadhyay (Expert)
23 September 2016 By reversing the provision of expenses, you need to show the indirect income. It means that provision of expenses has to be debited and other income has to be credited.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
09 May 2026
Audit Manager

Kanna and Associates

Coimbatore

CA Inter

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
08 May 2026
CHARTERED ACCOUNTANT

SHAH LADHA AND ASSOCIATE

Ahmedabad

CA

View Details
Company
07 May 2026
CA Assistant

amit desai and co

Mumbai

CA Final

View Details
Company
12 May 2026
Accounts Executive

Nafa Group

Mumbai

B.Com

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details