P&L account

Accountancy

We have taken a loan of Rs.50,00,000/- from a bank with interest of 5% per annum. Now we are paying the interest for 1st year at the end. Shall I show these in P&L account or Balance Sheet?

Vijay K

CA Inter

★ 9K+

01-Jul-21 11:11

597

Answers (1)

Loan amount at historical cost of 5000000 in balance sheet Intrest portion charge periodically to profit and loss statement

Abhishek Purohit

CA Inter

★ 10K+

01-Jul-21 11:23