What are the accounting treatments for interest regarding Bad and Loss account in Bangladesh?

Answer:

a) If any loan or advance is classified as 'Bad/Loss', charging of interest in the same

account will cease.

b)  In case of filing a law-suit for recovery of such loan, interest for the period  till filing of the suit can be charged in the loan account in order to file the same for the amount of principal plus interest. But interest thus charged in the loan account has to be preserved in the 'Interest Suspense' account.

c) If any interest is charged on any 'Bad/Loss' account for any other special reason, the same will be preserved in the 'Interest Suspense' account.