How is loan installment included in balance sheet?
1 Answer(s)
Binny
Balance sheet is rarely prepared for 1 day. It is typically prepared for a quarter, 6 months or a year.
To be very accurate, accountants will start a B/S account to accrue the interest that has to be paid by breaking it down into daily interest accrued. And finally when the interest is paid, this account will be reset to 0.
Dec 17 2012 10:12 AM
To be very accurate, accountants will start a B/S account to accrue the interest that has to be paid by breaking it down into daily interest accrued. And finally when the interest is paid, this account will be reset to 0.