hi respected all,
I have taken a loan of Rs. 24,87,788.
Break Up
Gold Loan Rs. 664000
Personal Loan Rs. 10,11,100
Unsecured Business loans Rs. 8,12,688
I am paying regularly. Total interest paid on Rs. 314378.
while gold loan taken on my name but assets is of my wife and mother.
should we show in profit and loss account in debit side as interest on loan Rs. 314378. or only unsecured business loan should taken.
pls guide
For personal loan it's not in business nature so it will not be reflected in profit and loss account the interest amount. it is void.
For unsecured business loans interest paid can be an expense which is debited in profit and loss account.
for gold loan, whether it is personal or for business related?? if personal then interest amount cannot be claimed
CAclubindia
