Sir,
Please tell me the accounting treatment of capital receipt in terms of loan waiver. And in which AS it falls.
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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
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