Loan Repayment
This query is : Resolved
VARUN.C.DAS
(Querist)
19 August 2010
Dear All,
Sir here the company taken 11 Nos Loan from Banks they first calculate all thew interest and booked it as an asset (interest suspense)and after that on payment the entry is booked as like this
Suppose the loan is 100000 from HDFC Bank
EMI is 3778
Loan tenor is 36 Months
Total interest is 36000
the 36000 is transfered to Interest suspense
the entry is
HDFC A/c Dr 3778
Interest (P&L)1000
To,Interest suspense 1000
TO,Bank 3778
Which is right /Not
Second
I have repayment schedule if i can't paid the instalment currectly can i booked the the interest as expense ?
Sir here the company taken 11 Nos Loan from Banks they first calculate all thew interest and booked it as an asset (interest suspense)and after that on payment the entry is booked as like this
Suppose the loan is 100000 from HDFC Bank
EMI is 3778
Loan tenor is 36 Months
Total interest is 36000
the 36000 is transfered to Interest suspense
the entry is
HDFC A/c Dr 3778
Interest (P&L)1000
To,Interest suspense 1000
TO,Bank 3778
Which is right /Not
Second
I have repayment schedule if i can't paid the instalment currectly can i booked the the interest as expense ?
CA Manoj Kumar Rai
(Expert)
23 August 2010
Dear Mr. Das,
Interest is Charged against profit not appropriation of profit. so you can book the interest as expenses when due as per accrual basis of accounting,whether it is paid or not.
Interest is Charged against profit not appropriation of profit. so you can book the interest as expenses when due as per accrual basis of accounting,whether it is paid or not.
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