int due but not paid

 

 

interest due for the last quarter(jan'10 to march'10) but not paid. where should this be disclosed as per schedule VI of Companies Act 1956?


Thanks & Regards

Rahika

Replies (7)

Dear,

As per company law the Books of Account should be preapered on 'accrual' basis, so in this case also the Interest is being accrued so it would be disclosed in b/s.

Regards,

CS Mayur Buha

If the loan is secured, show interest due but not paid under secured loans. If not, show under current liabilities and provisions.

Dear Radhika, Interest due but not paid should be disclosed in the balance sheet as per schedule VI of the companies Act, 1956. As Mayur Sir has rightly pointed that books of accounts must follow accrual method of accounting. Regards, Jayesh

Dear Radhika

 

It Will be included in Secured Loans not be shown separated 

and in Annual Return in will be also shown as included amount where it required as total amount indebtness.

 

 

Regards

There are two things.

Interest due but not paid is your liability. It should be credited to such loan account.

But interest accured but not due is not liability at present. But as per accural basis of accounting such interest should be provided in books. It will be shown as Interest accured but not due under current liability.

Interest accured but not due means,

suppose you have to pay interest half yearly that is June and december.

As for as 31st march is concern you would have paid interest till december. But interest for the period of jan, feb, and march will he paid in june. Now it is not your liability. So this interest will be shown in interest accured but not due.

Originally posted by : Sathyanarayanan. CA Final

There are two things.

Interest due but not paid is your liability. It should be credited to such loan account.

But interest accured but not due is not liability at present. But as per accural basis of accounting such interest should be provided in books. It will be shown as Interest accured but not due under current liability.

Interest accured but not due means,

suppose you have to pay interest half yearly that is June and december.

As for as 31st march is concern you would have paid interest till december. But interest for the period of jan, feb, and march will he paid in june. Now it is not your liability. So this interest will be shown in interest accured but not due.

fully agree with it ........if ur interest is accrued and due ..both then it will be shown as added with loan a/c

Dear Radhika,

What Faiz has said is 100% right.

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