holding companies giving unsecured and secured loan to subsidiary companies , the percentage of interest same foll all company or it will differ based upon companies. please tell me
our firm received a term loan of 25 lac with a tenor of 7 years along with a moratorium period of 6 months for construction. the reimbursement of capex was done by bank for 12 lakh. for the rest amount we used to give letters to bank for payment to a suppliers for machinery purchase. interest was charged at@ 11%.
Please tell me how the entries will be done as the amount was not actually received and was by bank only to the suppliers account directly