Sir,
Please tell me the accounting treatment of capital receipt in terms of loan waiver. And in which AS it falls.
Menu
accounting treatment
Replies (3)
It should be covered under AS-5. It is extra ordinary income & to be shown in P&L and at same time i have to write off loan amount. Example
Loan amount 10Lac, Final settelmet 8 Lac, 2Lac is a capital receipt.
Creditor/ Loan Ac Dr 2 Lac
To P&L Ac 2 Lac
The Capital Receipt of Loan Waiver can also be treated as a Governmnet Grant and dealt in as per AS-12
harpeet is right if it is long term loan & if it is short term or working capital loan treat it asrevenue income at normal course of business
Recent Topics :
- LTCG 112A and business loss
- FAST-DS 2026 applicability: foreign employee share
- NRI Property Sale in India: TDS Rates and Key Comp
- Clarification on September 2026 PF Calculation for
- DRC-03 interest paid under CGST/SGST instead of IG
- GSTR1 amendment Bulk bills
- Capital Gain on Sale of Gold
- GST SALES RETURN MISSING 2025-26 FY
- Enquiry on FAST-DS system generated email
- Capital gain on sale of agriculture land
Related Topics :
CAclubindia
