Interest on loan
This query is : Resolved
30 June 2015
If loan is given to some individual and interest is being paid every year without deduction of tds what will be the entry?
do we need to make a provision and then show the payment? or directly the interest payment entry? the balance will keep reducing
do we need to make a provision and then show the payment? or directly the interest payment entry? the balance will keep reducing
Amol S Joglekar
(Expert)
30 June 2015
Under mercantile system, we need to mae the provision and then make the payment.
Under cash system, we can directly show the entry of interest as and when paid.
The entry of INTEREST has to be made separately.
Under cash system, we can directly show the entry of interest as and when paid.
The entry of INTEREST has to be made separately.
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