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Accruing Intercompany Loan Interest

Recording interest earned on a loan provided to a subsidiary or related entity.

Account NameTypeDebit ($)Credit ($)
Interest ReceivableAsset (+)750.00-
Interest Income (Intercompany)Revenue (+)-750.00

💡 Accountant's Note

Common in groups like alfanar. Even if no cash moves, the interest must be recognized to reflect the arms-length transaction principle.

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