Page 69 - 23. COMPILER QB - IND AS 109_32
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To Bank 25,00,000
(Being the loan is given to Balram Ltd and recognised at fair
value)
Accrual of Interest income
2 Loan to Balram Ltd Dr. 2,13,540
To Interest income 2,13,540
(Being interest income accrued) – Year 1
3 Loan to Balram Ltd Dr. 2,39,165
To Interest income 2,39,165
(Being interest income accrued) – Year 2
4 Loan to Balram Ltd Dr. 2,67,795
To Interest income 2,67,795
(Being interest income accrued) – Year 3
On repayment of loan
5 Bank Dr. 25,00,000
To Loan to Balram Ltd (Subsidiary) 25,00,000
Accounting in the books of Balram Ltd (Subsidiary)
S. No. Particulars Amount Amount
On the date of loan
1 Bank Dr. 25,00,000
To Loan from Ram Ltd (Payable) 17,79,500
To Equity (Deemed Capital Contribution from Ram 7,20,500
Ltd)
Accrual of Interest
2 Interest expense Dr. 2,13,540
To Loan from Ram Ltd (Payable) 2,13,540
(Being interest expense recognised) – Year I
3 Interest expense Dr. 2,39,165
To Loan from Ram Ltd (Payable) 2,39,165
(Being interest expense recognised) – Year II
4 Interest expense Dr. 2,67,795
To Loan from Ram Ltd (Payable) 2,67,795
(Being interest expense recognised) – Year III
On repayment of loan
5 Loan from Ram Ltd (Payable) Dr. 25,00,000
To Bank 25,00,000
Scenario (c)
Generally, a loan, which is repayable when funds are available, can’t be stated to be repayable on demand.
Rather, the entities need to estimate repayment date and determine its measurement accordingly. If the loan
is expected to be repaid in three years, its measurement will be the same as in scenario (b).
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