Accounting Procedure with the interest of classified loan pr advances is classified seeing that SMA, ‘Sun- standard’, as well as ‘Doubtful’, interest could be charged in the actual loan account; nevertheless the interest thus charged cannot be transferred to income account. If classified loan or a part of it is retrieved i. e. real deposit is effected inside loan account, first the interest charged but not charged shall be recovered from the actual said deposit as well as the principal to be adjusted afterwards.
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