Taxation - Unsecured Loan

In cash  basis of accounting you can record only those expense for which you have paid. In your given case you can charge interest in p/l account only if actual payment is made, otherwise its improper to record.

Dear, how can u show such expense in books under CASH SYSTEM, if u r not actually paying it???

U can show that expense in FY 10-11 only

I am agree thanks very much