Accountancy, asked by Kanishkasharma49281, 1 year ago

How is income accured in respect of non performing assets dealt with by banks explain?

Answers

Answered by sujiritha95

income in respect of non performing assets should be recognize on
cash basis in banks .

sujiritha95: pls mark it as brainliest answer

Answered by krishna210398

Answer:

Income from non-performing assets (NPA) is not recognised on accrual basis but is booked as income only when it is actually received. Therefore, banks should not take to income account interest on non-performing assets on accrual basis.

Explanation:

How do banks deal with non performing assets?

Nonperforming belongings are listed on the balance sheet of a bank or different financial group. After a extended length of non-payment, the lender will pressure the borrower to liquidate any property that have been pledged as a part of the debt agreement.

What are non acting property and how do you cope with them?

A mortgage is classified as a non-acting asset whilst it isn't always being repaid by the borrower. It consequences in the asset not producing earnings for the lender or financial institution due to the fact the interest isn't being paid by way of the borrower. In this sort of case, the mortgage is considered “in arrears.”