I have a doubt in Sum No. 10 of PM
interest on Reduction in receivables Rs. 76301 is considered as saving Why?
Please explain
Hi, Company would incur over draft finance cost (Interest), if it does not opt for Factoring Proposal. If the Company accepts the Factoring Proposal, it will not use overdraft facility and hence the interest charges on overdraft would be saved. Therefore, It is treated as saving. Hope u understood.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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CAclubindia
