what wil be complete accounting treatment of int. eaened on NSC in case of proporietary concern.
Dear Vishal
The accounting of Interest on NSE is depends on the pattern of accounting adopt by the firm
In case of Accrual basis of Accounting the Interest will be accounted on acnnual basis.
You should debit the Interest receivable (Accrued Interest - Assets) A/c and credit to Income from Interest.
In case of Cash basis of accounting the accounting of Interest will be done on receipt.
Hope it may help you
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