what is the journal entry for payment of interest for loans.?

Answer Posted / raghu.v

While paying the interest on loans :-

Case :1
Interest a/c Dr
Loan A/c Cr

Case :2
Interest a/c Dr
Cash/Bank A/c Cr

Is This Answer Correct ?    2 Yes 0 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

Hello Friends, I am Vinod Rawat & want some tips of interview question for the post of accountant in a reputed company Pls. Given Examples.

1568


Explain purchase day book.

658


What are document required by the bank to make payment for debit memo (Import). if we have allready made payment for orignal bill.

1457


Can you help me to pass the journal entry for work in progress for a construction company? I would like to know the debit and credit for W.I.P will be under in which accounts head. Eg: debit will be in current asset a/c head, and credit will be under in which a/c in P&L? whether under purchase a/c head, or under direct income a/c head? please give me the details. Thanks for your previous answer?

1717


cash with drawn from bank with issuing self check vide ch no.123456 how to enter in sap. please send answer anyone this is very helpful to me

1792






What is dd and a in oil and gas accounting?

674


What is the purpose of accounts like e.g. expense accounts assigned a account number 0040, principal account assigned anumber 0060.In our general ledger software such numbers are assigned.I want to know how these numbers (accounts) help in maintaing accounts of a company (like bank reconciliation).

1399


can any one tell what is the selection proces in cognizant for MBA finance

6526


difition of reserve & surplus

1753


my question is I am finance student I want to know which type of the question are asked by the interwier in interview.

1591


What are the advantages of computer accounting over paper accounting?

602


what will be the treatment of preliminery expenses if due to preliminary expenses being written off there results a loss?

1643


What would be journal entry for--Encashed a bank draft belonging to X? Ans as given in textbook is Bank account debit to Cash account credit.......But shouldnt it be Cash account debit to Bank account credit...Wat do u guys feel??And do explain ur answers..Thnx in advance

5798


What is the fictitious assets?

647


How Can We Differ Horizental & Vertical Balace Sheet? Explain.

1417