interest on loan not paid by the entity so that bank rescheduled the loan by capitalising interest
by this interest amount is capitalised so loans amount increased in liabilities what corresponding impact in
books of accounts ?
pls suggest me as early as possible
Dear JSR, unpaid amount of interest would be refleted on liability side of balance sheet you have to transfer that amount to loan account
UN PAID INTEREST HAS TO BE TRANSFERED TO LOAN ACCOUNT AND IN CASE THE SAME HAS BEEN TAKE AS DEDUCTION U/S 43 B FOR ANY YEAR ... THE SAME HAS TO BE NOW TREATED AS INCOME FOR THE CURRENT ASST. YEAR SINCE EARLIER DEDUCTION WOULD HAVE BEEN TAKEN WITH OUT PAYMENT OF INTEREST.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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