Treatment of emi of borrowed capital/loan
This query is : Resolved
raju jaihind
(Querist)
19 December 2012
Sir,
Pls. advice how to treat the borrowed Capital or its EMIs paid/retuned during the year? Is it Possible to reduce the total amount paid from the net profit? How about its interest?.
Regads,
P. K. Raju
Pls. advice how to treat the borrowed Capital or its EMIs paid/retuned during the year? Is it Possible to reduce the total amount paid from the net profit? How about its interest?.
Regads,
P. K. Raju
Dintakurthi Tirumala
(Expert)
19 December 2012
If such borrowed capital is used for the business purpose then interest on such borrowed capital is eligible for expenses and deducted from Net profit and principle portion of EMI shall be debited to such borrowed capital and decreses such borrowed liability.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
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