Accraul of Interest

When a loan is processed the system after cob passes accrual entries by debiting the interest receivable account and crediting the interest income account. If the bank does not want to accrue the interest income but rather park the funds in a suspense account. is this possible in t24?

Hello

T24 provides options to reverse the accrued interest in case the income is not recognised after defined period of time.

As per current set up ,the interest will be accrued in the interest income category.

Regards

The query of vijaynikshan is whether Int receivable Dr and Susp A/c credit can be simultaneously posted as two legs of the same transaction. Whereas Emushaija's reply is that it can be done at a later date if you do not wish derecognise the income.This will be a different transaction altogether.

I am also keen to know what vijaynikshan has in mind. Normally from a functional angle, Int receivable will be debited and a Suspense account (like Memorandum of Interest) will be credited once an account is recognised as past due /non performing. Such a debit is required to show the interest due on the account but the credit is not taken to P&L because it is deemed unrecoverable in the present context.

how do i reverse accrued interest in case the income is not recognised after defined period of time?