Calculation of interest on loan on yearly basis

This query is : Resolved

Ruchi Agarwal (Querist)
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26 March 2014 Suppose Altd. has taken loan from director of say Rs. 10lakhs on 1/4/2012 @ 9% P.A. It has made various payments to directrs on various dates, say Rs. 150000/- on 14/06/2012, Rs. 43000/- on 02/08/2012, Rs. 190000/- on say 15/12/2012. A ltd. has further taken loan of Rs. 5lakhs on say 15/01/2013. How to calculate Interest on loan as on 31/03/2013????

CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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26 March 2014 Hi Ruchi,

Interest will be calculated for the no. of days loan is utilised, i.e. as under,

On Rs.6,17,000 interest for 366 days
On Rs.1,50,000 interest for 75 days
On Rs. 43,000 interest for 124 days
On Rs.1,90,000 interest for 259 days
On Rs.5,00,000 interest for 76 days

Hope this will be clear to you and you will be able to calculate interest now.

Regards,
Devanand

Ruchi Agarwal

Ruchi Agarwal (Querist)
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28 March 2014 cant we calculate int directly on the closing bal as on 31/03/2013 for the whole year????

Ruchi Agarwal

Ruchi Agarwal (Querist)
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28 March 2014 cant we calculate int directly on the closing bal as on 31/03/2013 for the whole year????

CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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28 March 2014
No we can't.

Interest is to be calculated proportionately (i.e. no. of days it is given)

Regards,
Devanand

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