Interest
This query is : Resolved
30 June 2012
EXPLAIN THE INTEREST ACCRUED AND DUE AND INTEREST ACCRUED BUT NOT DUE WITH EXAMPLE IN RELETING REVISE SCHEDULE VI
30 June 2012
Interest settlement dates can be quaterly, monthly or annual.
say for example: there is a loand of Rs 100
interest is to be paid on 20th of every quarter.
FOr an entity with the year end of March 31, interest will be accrued from 21st till 31st march. This interest is not due for payment till June 20. Thus it is accrued but not due.
Howeevr, if the interest which was accrued on March 20 as per the quarterly settlement terms, and not paid till March 31, it is classified as accrued and due.
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Accrued means it is a provision.
Due means it has become a liability and opposite party can enforce the payment on that date.
say for example: there is a loand of Rs 100
interest is to be paid on 20th of every quarter.
FOr an entity with the year end of March 31, interest will be accrued from 21st till 31st march. This interest is not due for payment till June 20. Thus it is accrued but not due.
Howeevr, if the interest which was accrued on March 20 as per the quarterly settlement terms, and not paid till March 31, it is classified as accrued and due.
---------------------
Accrued means it is a provision.
Due means it has become a liability and opposite party can enforce the payment on that date.
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