We tend to charge daily interest in the accounts on overdrawn loan accounts . I have the following scenario on a 30/11/11 year end loan account
23/07/10 £35,000 Overdrawn
23/08/10 £4,500 Overdrawn (Repaid £30500 on this date)
05/04/11 £4,500 Overdrawn
30/11/11 £4,500 Overdrawn
Am I correct in thinking that interest is charged from 23/07/10 to 05/04/11 as the loan exceeded 5k overdrawn in that period and did not go back into credit? And the period 06/04/11 to 30/11/11 no interest is due, as the loan did not exceed 5k in the tax period up until the end of the accounting year?
Thanks in advance