Dear Sir/madam,
i have availed vehicle loan from Axis bank and taken moratarium for 6 months as per RBI till August 20. The moratiuram has been availed for 6 months . Now in Sept bank has added interest cost in my principal amount and revised the EMI schedule. details as below.
Loan account balance on 28th feb 20 5.21 lacs
Moratiuram principal+ Interest amount
From March to August end. 1.30 lacs ( This amount added in my earlier principal amount)
New loan account balance on 1st Sept 20 6.51 lacs
Querry :-
Since there is no actual cash inflow in my loan account of Rs 1.30 lacs , how should i increase the loan balance in my books. which will tally with bank statement . Kindly suggest for accounting entry for adding the moratiuram amount of Rs 1.30 lacs in my loan account.
Regards,
Manoj
CAclubindia
