19 August 2010
Dear All, Sir here the company taken 11 Nos Loan from Banks they first calculate all thew interest and booked it as an asset (interest suspense)and after that on payment the entry is booked as like this Suppose the loan is 100000 from HDFC Bank EMI is 3778 Loan tenor is 36 Months Total interest is 36000 the 36000 is transfered to Interest suspense the entry is HDFC A/c Dr 3778 Interest (P&L)1000 To,Interest suspense 1000 TO,Bank 3778 Which is right /Not
Second I have repayment schedule if i can't paid the instalment currectly can i booked the the interest as expense ?
19 August 2010
By this way you have to book Loan Account from HDFC with amount 3778 muliply 36 = 136000/- agaisnt which you will shown interest suspense account of Rs. 36000 in assest a/c.
You can do this. But it is better to book loan amount at pricipal i.e Rs.100000/- As when you pay instalment, then booked interst as expenses like HDFC 2778 Interst 1000 To Bank 3778.
Second : Until & unless you have not paid instalment , then you can't booked interest as expense. Interest will be booked as interst when you will paid it.
CAclubindia
