16 May 2011
When cash recovery is made in any NPA account what is the next step in regard to its overdue interest whether it should be debited in the account
16 May 2011
If any recovery is made in case of NPA it has to be adjusted towards interest after that recovery has to be made towards principal.Normally in case of NPA income itself we recognise on cash basis.First entry to be made is transfer of interest amount from Interest on NPA a/c to Interest a/c.
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