Hi, Based on the limited information that has been shared it appears as follows:
Loan accepted means company has taken a loan from the related party
No, it means company has paid more to the related party who now owes it the money. See for Hiren Kotecha – Loan repaid = 0.72 which is the Closing balance for 21-22 which is also the opening balance for 22-23. So it seems it means company has paid him 0.72 which he now owes to the company
Interest expense will be on the entire loan exposure for the tenure of the loan. You cannot get the interest calculation from the given information since the dates of the loan taken / repaid etc are not available.
Overall, the following formula should hold for the numbers given:
Opening Balance + Loan Accepted – Loan Repaid + Interest Expense = Closing Balance
If it doesn’t seek an explanation from the company.
| Subscribe To Our Free Newsletter |
