What is the treatment of interest on loan being reversed

According to me .....For accounting purposes following entry to b passed Interest A/c............dr .................. To loan A/c......cr(assuming no interst entry passed earlier)............... if interest entry hav been passed earlier entry wud b.........interest payable a/c ...dr...........to loan a/c(i.e transferring the interest payable to loan a/c) ......... for income tax purpose interest converted into loan should b reduced from total interst expense since for IT purpose it is not considered as actually paid.

In a nutt shell......for accounting purpose, no need to reduce interest just transfer interest payable(i.e account which has been credited while charging interest on due basis) to loan a/c.And for IT purpose dont consider above converted interest in total interest expense while computing tax payable.