banner_ad

Accounting of write back liability

A/c entries 5386 views 1 replies

My company had a book balance at Liability side as Loan from CEA of Rs.120.00 Cr and Interest Accrued and due on Loan of Rs.5.20 cr as on 31-03-2008. After completion of Statutory Audit we came to know that the above balance is not appears in the Books of CEA,as such the total Liability now need to be write back in the current Year (2008-09) accounts.

Now my  queation is that what accounting entries will pass and what will the tratment of the above two liability in 2008-09 i.e to say whether the Interest Accrued balance will be book under crdeit side of the Profit & Loss Account and for Loan Balance whether it will be treated as Free Reserve or capital reserve.

Please help me , this is urgent.

Replies (1)

No set standard for this.....however as per practice u can take both to the P&L as an exceptional item(Dont frgt to explain in Notes to Account)....

 

Written back of Loan will not be taxable... However if interest had been allowed as deduction...it will be taxable in the year in which it is written back!

 

>>Vipul garg


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
09 May 2026
Audit Manager

Kanna and Associates

Coimbatore

CA Inter

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
14 May 2026
Financial Analyst - Remote Finance Expert

HiringBridge

Ahmedabad

CA

View Details