Bayt.com

Communiquez avec les autres et partagez vos connaissances professionnelles

Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.

Suivre

Is there any concept for interest on drawings (not capital),if yes than how to treat entry in accounting records?

Accounting Finance
user-image
Question ajoutée par Salam Khan , General Accountant , Emirates Future General Trading L.L.C
Date de publication: 2018/12/16
Apprécier (1) Vues (3) Suiveurs (3) Réponses (2) Report Question
Ajoutez Une Réponse
Inscrivez-vous ou connectez-vous pour répondre.
Mohmmad Janealam
par Mohmmad Janealam , ACCOUNT MANAGER , Etihad Blue Groups of Company

1. It is credited to the Profit & Loss Account.

2. It is added to the Drawings and then deducted from Capital, in Balance Sheet (liability side).

Muhammad Rizwan Sabir
par Muhammad Rizwan Sabir , Manager , MSI Global

It depends on the situation if drawing is repayable on demand then treat them as current receivable by the company and no interest charge on them.

if drawing is for longer period and agreed terms then interest on them shall be booked entry will be receivable debit and interest income credit.

Ecrivez Votre Réponse
More Questions Like This