Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Business loan

14 December 2018

I had taken business loan of sum Rs 18 lakhs in the last financial year .. in this financial year i have closed that loan but last year i have not shown the processing fees can i show it this year.... while closing it

Reply
Follow
Share

6 Replies

jyoti bhagchandani (fresher) (595 Points)
Replied 14 December 2018

as per the matching principle of accounts the income and expenses belonging to the same period can be claimed ... so last year expenses could not be claimed...

Upgrade to CAclubindia Pro. Subscribe Now!

Pramod Kuruvatti (136 Points)
Replied 14 December 2018

then how to take that entry

jyoti bhagchandani (fresher) (595 Points)
Replied 14 December 2018

you can adjust it with capital or reserves

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 15 December 2018

as per accounting principles you can account it in the normal way. however for tax purpose it wont be allowed

Omi Kulkarni (4 Points)
Replied 16 December 2018

for the counting purpose debit whole processing fee to P &L . you can only show half as a current period and half as a last yr expense so spread it over the loan tenure same as interest. the half of the amount should be disallowed as a prior period items for the taxation purpose