Question

Amount of interest paid to ali should be debited to​

Answer 1

All expense and income accounts are classified as nominal account. Rule for nominal account describe that all expense and losses should be debited and al

Answer 2

In this question, we are asked to tell the amount of interest paid to Ali should be debited.

• If interest is paid then it is an expense and it will always be debited as an expense is debited.

• If interest is received to record interest receivable is a debit to the interest receivable account and a credit to the interest income account.
• Interest paid to Ali will be debited to Ali's account and bank will be credited as it is our asset and which is getting reduced.

PROJECT CODE #SPJ3