Interest on Nonoperational Sticky Loans Should Be Accounted for Upon Realization, Not on Mercantile Accrual Basis.

Accrual of interest income - nonoperational sticky loans in respect of which mercantile actual of interest was shown in the suspense account and not the profit and loss account, would not, in law, be payable on mercantile accrual basis. Interest on such loans would have to be accounted for and paid as and when it is realised. - HC .....

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