Realisation of debt by selling the asset under charge

397 views
User Avatar

1359 Points Posted on 18 March 2023
a IT company has given a loan to a firm but now the firm is unable to repay it so the firm give its inventory in full settlement. my query under which head of balance sheet (assets) of schedule 3 it is to be disclosed?
1 Reply Share Follow
On 18 March 2023 at 20:07 Report
Replies (3)
Quick Summary
An IT company has accepted inventory as full settlement for a loan from a firm unable to repay. The discussion clarifies how to account for this on the balance sheet. The inventory should be disclosed under 'Other Current Assets' until it is sold, after which the charge can be removed.

User Avatar

Profession
28271 Points Posted on 20 March 2023
First remove the charge and then sell.
1 Reply
On 20 March 2023 at 06:55
User Avatar

1359 Points Posted on 20 March 2023
Yes but under head of asset it is to be disclosed till it is sold
Reply
On 20 March 2023 at 17:25
User Avatar

CA
1251 Points Posted on 20 March 2023

Other current assets.

1 Reply
On 20 March 2023 at 18:51

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topics :

  1. Guidence requested for a Finance Professional with
  2. Expert Opinion Required – Form 140 Gross Amo
  3. WRONG TAX DEMAND - formal responses , rectificatio
  4. Foreign remittance
  5. Affordable Residential Flats in Gurgaon
  6. Manufacturing
  7. TAN REGISTRATION ON E-FILLING SITE
  8. Form 10-IEA – Continuing Old Regime
  9. Income tax act 2026
  10. Belated Return where Form 10IEA filed this year to

More recent discussions | Post

Related Topics :

Loading