Interest bearing loan to related party abd Schedule III

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394 Points Joined June 2021

Should we show interest bearing loan to related party in Balance sheet Schedule III under loans and advance  .

Then applicable AS etc

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On 20 August 2024 at 15:09 Report
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Master in Accounts & high court Advocate
9434 Points Joined December 2011

Yes, an interest-bearing loan to a related party should be shown in the Balance Sheet under Schedule III, specifically in the "Loans and Advances" section. Here's how to report it: 1. _Loans and Advances_: Show the loan as a liability in the "Loans and Advances" section of the Balance Sheet. 2. _Related Party Disclosure_: Additionally, disclose the loan in the "Related Party Transactions" notes to the accounts, as per Accounting Standard (AS) 18. 3. _Interest Expense_: Report the interest expense on the loan in the Profit & Loss Account. Remember to comply with the applicable accounting standards and regulatory requirements.

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On 27 August 2024 at 12:20


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