Moratorium interest capitalisation NBFC

Jatin (Accountant) (3479 Points)

14 July 2021

What is the accounting entries for moratorium interest capitalisation

Is TDS applicable on Interest

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7 Replies

Balamurali Unnithan MS (STUDENT) (1631 Points)
Replied 14 July 2021

Yes, It's due 1st -So TDS Applicable.

Post-normal -Interest Payable (Current Liability ) Entry.

CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 14 July 2021

Yes TDS is applicable on moratorium

Jatin (Accountant) (3479 Points)
Replied 14 July 2021

Thank you Mr. Balamurali & Sourav

NBFC add moratorium interest amt in outstanding loan account and increase tenure

what is the accounting entry ?

Balamurali Unnithan MS (STUDENT) (1631 Points)
Replied 14 July 2021

Credit the interest portion, debit the principal amount.

Jatin (Accountant) (3479 Points)
Replied 14 July 2021

Mr. Balamurali Ji,

not understand your accounting entry

below entry is right, please check

Interest account Dr.
Lender account Cr.

Balamurali Unnithan MS (STUDENT) (1631 Points)
Replied 14 July 2021

What about the principal portion.

Jatin (Accountant) (3479 Points)
Replied 14 July 2021

Lender account means

Aditya Birla Loan A/c - Amount (Principal outstanding)

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