Banking
Interest in Suspense — NPL Transfer
Transferring previously accrued interest to suspense when a loan becomes non-performing.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Interest in Suspense (Contra-Asset) | Contra-Asset (+) | - | 25,000.00 |
| Accrued Interest Receivable | Asset (-) | 25,000.00 | - |
💡 Accountant's Note
All previously accrued but unpaid interest on a newly classified NPL is reversed from the receivable and parked in suspense. This prevents overstating income on loans that are unlikely to pay.
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