Loan and its interest

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2010 Hi,

Please answer the query :

If a company takes a secured loan or unsecured loan, then what is the nature of Accrued Interest on that loan or Interest Accrue but not yet due..

Thanks,
Anil

Aditya Maheshwari

Aditya Maheshwari (Expert)
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06 September 2010 If interest payable at the end of the year then interest accrued and due and if payable only after end of a certian period other than on the financial year end then interest accrued but not due.

Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2010 Sorry aditya,..
i think my question is not clear.

I want to know whether that interest come in the current liablity at the year end or part of secured or unsecured loan ?

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Thrissurkkaran Ishtan

Thrissurkkaran Ishtan (Expert)
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06 September 2010 If the interest is payable in less than 12 coming months will be current liability.

If more than 12 months it will Unsecured or Secured liability based on the terms of the loan.

If the loan says interest is also covered by the same security or another security, then it will be classified as secured, otherwise unsecured.

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2010 Thanks Thrissurkkaran