Suspense Account Definition and Relation between Classified loan interest and Suspense account

Suspense Account Definition and Relation between Classified loan interest and Suspense account

On the off chance that any advance or progress is named Sub-standard, Doubtful and Bad and Loss, intrigue collected on such advance will be credited to Interest Suspense Account, rather than attributing the same to Income Account. In the event that we go for such sort of advances criteria we realize that a SS credits alludes an order for an advance that is relied upon to bring about lost enthusiasm for the bank, on the grounds that the borrower is probably not going to have the capacity to totally pay back the advance for reasons unknown. Then again, DF advance means an advance where full reimbursement is sketchy and unverifiable. Level of reimbursement of advances being referred to run from a total misfortune to unverifiable misfortune unless remedial moves are made. Again we realize that a Bad obligation is obligation that isn't collectible and thusly useless to the loan boss.
In this manner we can state that these advances are not in the general/performing nature and these advances intrigue are on accumulation premise, where recuperation won't in the customary mode. This is the reason; the ordered advances intrigue must be suspended and move in the intrigue tension record as opposed to current year pay account.