Loan Waiver Reduces Liabilities, Boosts Capital Reserves; Recorded as Capital Receipt in Profit & Loss Account.

Waiver of loan amount - when a portion of the loan is waived, the total amount of loan shown on the liabilities side of the balance sheet is reduced and the amount shown as Capital Reserves, is increased to the extent of waiver - amount representing the waived portion of the loan is shown as a capital receipt in the profit and loss account itself - HC .....

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