hi all, a company i know borrowed some money from nbfi based on the AR but not exactly factoring. just as a security. the interest is simple interest. interest and principal is same over a period of 2yrs. The lender wants the company to show the total liability including interest in our books.
Its a challenge as u all know interest we will charge to p&l on monthly basis and principal goes to BS as liability.
Do any of you find a way to show full liability?
Menu
Loan accounting
Replies (3)
I think, it is same. Just club the interest liability to the loan amount at year end.
When you didn’t pay the interest
Interest expense a/c—> recognised annually
To Accumulated Interest a/c—> accumulated on balance sheet under current liabilities
If interest is paying monthly , then it is to be recognised as an expense and should be shown in profit and loss account , Can not club with loan account .
Interest is an current expense , Loan is future liability .
Interest is an current expense , Loan is future liability .
Recent Threads
- Clubbing of income on ULIP
- ITR2 Processing Delay
- TDS demand payment notice
- Invoice NOT in 2B but showing in 2A, and supplier
- Is ITC available on VRF AC
- Capital gains on sale of furnished flat
- Heard & Seen Around – Your Daily Economi
- Gst interest and penalty doubts regarding missing
- Import of goods IMS telated
- ITR 6 submitting Problem
Related Threads
CAclubindia
