Interest income received

Bank A/c Dr
To Interest A/c
To Unearned Interest A/c
Correct me if i am wrong

if you receive 3000₹ interest and if you received excess 3000₹ then,

Bank a/c 3,000₹ Asset

Advance a/c 3,000₹ Asset

To Interest income 6,000₹ Income statement.

however, IndAS recognition of loans given examples are not available. So write off the advance next year and enter it as:

Bank a/c 3,000₹

To Advance a/c 3,000₹

The problem is, one can recognise loan asset and reduce company bank account initially when a loan is given like below:

Loan a/c

To Bank a/c

then, can recognise the whole interest income under accruals

Interest Receivable a/c

To Interest income a/c

the problem again here with this entry is, when you actually receive interest annually, it will be recognised twice. So, the balance sheet treatment for SPPI/amortised cost method is not published in regards to Interest receivables recognition. I’ll check tomorrow. 

On a second thought, this could be done in a different way because the Advance entry is inaccurate to calculate cash flow statement:

loan a/c 3,00,000₹

To bank 3,00,000₹

(Ten year loan given)

Interest receivable a/c 30,000₹

To Interest income a/c 30,000₹

(ten year interest receivable)

Bank a/c 3,000₹

To Interest receivable a/c 3,000₹

(annual interest received)

Bank a/c 30,000₹

To Loan a/c 30,000₹

(Annual principal received)

The arrangement should be like this from the beginning of loan. 

I think I must give an eg. suppose I have given a loan to a co. say 1 lakh on 01-04-2019, now party had returned part of rs. 25k on 25th March 20 and shown the interest payable in their book @ 12% i.e. 12,000/- less Tds 120/- what accounting treatment will given for this, and in the next year the interest paid for April to August is excess paid say rs.5000/- along with Tds what accounting treatment will be given for the above transaction.

TDS is applicable if it is a security deposit like FD or post office deposits, TDS is nil if it is a person or a company. If TDS is applicable, 

Bank 90₹

10% TDS 10₹

To Receivables 100₹

if TDS is not applicable,

Bank 100₹

To Receivables 100₹