Interest and default payability
This query is : Resolved
10 July 2015
since interest and penalties wetre to be paid due to default done by party.. so why it cant show as debit from capital account..
there is any reasonable justification about showing in debit of P/L ?
11 July 2015
Hi Amay -
Basic rules of accounting. All expenses need to be either part of P\L or liabilities in case spill over next year.
Interest is paid for the loan\funds taken to run your business and not part of his personal capital. Penalties are for some delayed payments, that is allowable to certain extent s per IT act
Basic rules of accounting. All expenses need to be either part of P\L or liabilities in case spill over next year.
Interest is paid for the loan\funds taken to run your business and not part of his personal capital. Penalties are for some delayed payments, that is allowable to certain extent s per IT act
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Exiting partner in partnership firm in gst portal
- CLOSING STOCK QUERY
- CASH GIFT FROM BLOOD RELATIVE
- TDS offline utility
- Due Date Clarity
- Gst on travel by air for business purposes
- Query regarding TDS on EPFO Higher Pension Arrears- under wrong section
- Query regarding Item 61/62/63 vs Item 64 in ITR-3
- Rent claimed on building given on permissive possession basis
- Taxability of credit in canara bank ET & T section (NRO)
- DUE DATE FOR ITR FILING
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
