HI!
When should we recognize interest income on loans in the books of accounts? Last day of the month to which interest belongs or 1st day of the month following the month to which interest belongs? e.g. if Interest belongs to April month option 1 on 30th April option 2 on 1st May.
Last day of the Month.
on accrual basis
interest accrues daily....so in theory u can pass daily interest entries but that is not feasible and practical...so do that every month or so
Chirag P Shah & Co. Chartered Accountant
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