How should i calculate interest on loan from partners?

Originally posted by : vinayak c. chavan
	How should I calculate Interest on loan received from Partners? Should I calculate at the year end or while making payment for it? I am using Tally software.

EVEN IF LOAN IS UNPAID AT YEAR-END, YOU SHOUDL CALCULATE THE INTEREST AT YEAR END AS PER MATCHING CONCEPT WHICH SAYS EXPENSES FOR TEH PARTICULAR YEAR SHOULD BE DEBITED IN THE SAME YEAR..... IF THE LOAN IS PAID BEFORE YEAR END, THEN DEBIT THE INTEREST EXPENSE AT THE TIME OF PAYMENT ONLY....

PLS FEEL FREE TO ASK IF U NEED MORE CLARIFICATIONS...