Interest

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gokulratna

student

42 Points Joined September 2008

Hi to Everyone

First of all i am thankful to this site for providing better information to Students.

Recently i came to a problem in accounts. i saw in one Of the return that interest on Term loans is taken as assest. is it possible. if so how to proceed

Replies (1)

yogesh sharma

CA Student

268 Points Joined September 2011

In this case the company may have paid installment including interest in advance on such loan so the installment and interest is treated as an asset. while doing sum you may be ignoring the repayment of loan and considering only interest.