suppose, I purchased plant and machinery and I take loan on it...moreover I transfer it on lease to someone.
now, annuity method will be considered here...
my question is ...interest on loan which I pay will be my expense and interest on lease is my income..
can I setoff interest expense against interest income???
Menu
Depreciation - annuity method
Replies (8)
Okay...thanks a lot...
Expenses made for earning income is allowed to set off
As per income tax , we can setoff the expense against income..but as per accounting , we can mention both in plant and machinery account..
like..
1.)depreciation account Dr
to plant and machinery
2) interest on loan account Dr
to loan account
3) plant and machinery ac Dr
to interest on lease account
is it correct???
like..
1.)depreciation account Dr
to plant and machinery
2) interest on loan account Dr
to loan account
3) plant and machinery ac Dr
to interest on lease account
is it correct???
Yes exactly
Okay...thank you ma'am
Welcome...... Dear ...
Depreciation annuity method is basically not required.
Read the query first @ sabyasachi
Recent Threads
- Poll: Do you spend > 30 min/day fixing Tally JSO
- Interest on Accident Claim by Minor
- Capital Gain and Basic Exemption Limit
- Loan to wife and interest income husband income or
- AOC-4 is not being filed
- Returning the shares gifted by daughter?
- Gst tax rate
- Accounting of Govt Grant in aid-Assam Tea Estate
- Utilizing Capital gains in new home construction
- Hi i have some doubt about my microsoft exam?
Related Threads
CAclubindia
