Dear Experts,
I have a query.
Mr. A have took loan from an NBFC and he was also invested in their debentures.Now Mr. A wants to give request to the Company by stating that insead of crediting interest on debentures in his bank account directly set off the same in his loan account.
Is it possible to execute Mr.A's request by the Company?
If its is NO, Please provide statutory backup also.
Thanks in advance.
The answer to this question will have two parts,
For 1st part: Can this be done, setting off Interest expense on Debentures issued and Interest Income on Loan issued to Mr. A. Yes it can be done and compliance part will not be hurt any of the below mentioned sections
For 2nd part: Can this be shown in books of accounts/Financial statements including Notes to accounts?
No, as true and fair approach is to be followed and as per the extract to notes to accounts given below, both should be shown separately
CAclubindia
