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Bank od interest regarding

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ABHI KUMAR

744 Points Posted on 30 August 2022

can we debit bank od interest in p nd l accouunt

Replies (4)

Quick Summary

Yes, you can generally debit bank overdraft (OD) interest to your Profit and Loss (P&L) account, provided the overdraft facility was used for business purposes. Both the accrued interest and the overdraft loan itself will be disclosed on your balance sheet and P&L statement. This accounting treatment is standard for business-related borrowing.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212444 Points Posted on 30 August 2022

Yes, provided the overdraft loan used for the business purpose.

sabyasachi mukherjee

Profession Business

28246 Points Posted on 30 August 2022

Interest accrued and interest both will be disclosed in balance sheet and p /l

Akansha jain

156 Points Posted on 30 August 2022

Yes, Bank OD interest is debited to Profit and Loss by the name Interest on Bank Loan if OD limit is used for the business activities of the company/ firm.