Sir,
Please tell me the accounting treatment of capital receipt in terms of loan waiver. And in which AS it falls.
Sir,
Please tell me the accounting treatment of capital receipt in terms of loan waiver. And in which AS it falls.
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
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
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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CAclubindia
