Ashish Tibrewal
(job)
(80 Points)
Replied 09 September 2010
Faiz Ahmed
( Article Trainee)
(1731 Points)
Replied 09 September 2010
When YOU treat as an expense, either you will pay on due date or you will create provision for it. No third option.
If you intend to pay treating as Accrued Interest Due, you will route it through bank and for this entry will be required.
If you have created provision then also Accrued Interest Due will become a core liability and for this entry will be required. You cannot simply change the place in B/S. Entry is required to change its status. Entry will be:-
Provision for..... Interest A/c Dr.
To Interest on Debenture.
Faiz Ahmed
( Article Trainee)
(1731 Points)
Replied 09 September 2010
| Originally posted by : Ashish Tibrewal | ||
 |
th intrvwr...asked me...."wt is th accounting enrty for acrued intrest due...?"...thts it....nothing mor..... bt i thnk in both tha cases whethr we traet it as income or expens...no enrty will be passed becuse we hav already passed th entry in P/L account fr acrued intrest ...... th only change will b in balance sheet.... we show acrued intrest under current liabilty..... bt aftr it becoms due...we will show tht under loan... |
 |
Don't do like this for any expense otherwise it may look like a Satyam Scandal. { Joke only, Do not take it to heart}
Faiz Ahmed
( Article Trainee)
(1731 Points)
Replied 09 September 2010
| Originally posted by : Faiz Ahmed | ||
|
|
When YOU treat as an expense, either you will pay on due date or you will create provision for it. No third option. If you intend to pay treating as Accrued Interest Due, you will route it through bank and for this entry will be required. If you have created provision then also Accrued Interest Due will become a core liability and for this entry will be required. You cannot simply change the place in B/S. Entry is required to change its status. Entry will be:- Provision for..... Interest A/c Dr. To Interest on Debenture. |
|
Consider this reply by recalling Prudence Principle of Accounting and don't misinterpret by any other logic.
Ashish Tibrewal
(job)
(80 Points)
Replied 10 September 2010
acrued intrest due entry will be.....
as an expense....acrued intrest ac Dr.
To intrest due ac....
and
as an income.........intrest due ac Dr.
To acrued intres...
frm th compnys point of view...
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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