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If i have taken loan of â?¹ 10 lakh.. And the interest on this amount â?¹1 lakh is due since last 3 years.. Then what amount is considered as NPA? Is it 1 lakh only or the entire 11 lakh

Christeena Ambel

CA Inter

★ 5K+

13-Oct-21 19:42

234

Answers (2)

Best Answer

First ,if the one lakh is already recorded in p and l it has to be reversed ,after that we should not recognise interest any where untill it received Second, if the interest was not recorded anywhere then no entry required Third - the banks will prepare memrandum loan account ,here the interst will recorded for future purposes ,(like if the customer pay some money , then we may consider this memo ac for interest balance) Conclusion : ONLY 10 LAKHS WILL BE SHOWN AS NPA

venkatesh sundharamoorthy

CA Final

★ 34K+

14-Oct-21 09:33

venkatesh sundharamoorthy

First ,if the one lakh is already recorded in p and l it has to be reversed ,after that we should not recognise interest any where untill it received Second, if the interest was not recorded anywhere then no entry required Third - the banks will prepare memrandum loan account ,here the interst will recorded for future purposes ,(like if the customer pay some money , then we may consider this memo ac for interest balance) Conclusion : ONLY 10 LAKHS WILL BE SHOWN AS NPA

Thank you so muchð???

Thread Starter

Christeena Ambel

CA Inter

★ 5K+

14-Oct-21 15:25

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