11 May 2011
suppose i have imported goods on 1st may 2011 worth usd 25000. now on that date my bank gives me an import loan. the rate of interest is 10% and loan period is 6 months.
if i am following accrual basis of accounting, then when will i record the outstanding interest entry? & what will be the entries???
11 May 2011
U have to book the transaction in accounts as an when the same is due or books closing, whichever is earlier. Entry Interest A/c dr to Interest payable A/c
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