Originally Posted by
Andromeda
Malose, this is my opinion only...
The loan was written off (I assume actually written off as opposed to impaired?) and now it is recovered, and your entries should merely reflect that.
The deemed dividend was an income tax issue and I assume no financial entry was done.
The repayment of the loan is just that, recovery of a previously written off amount. I don't believe there is any interest because of the original terms.
Much depends on what you did in the past. A deemed dividend is a tax entry and don't think you should have reflected a dividend received. If you did then yes you should reverse it, with suitable disclosures.
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