Question

borrowed 44000 from simrans brother Jaydeep with 10% interest what is its entry​

Answer 1

Answer:

Explanation:

Cash is borrowed from Ridhi which means Ridhi is our creditor. We will open 3 accounts - cash account, interest account and Ridhi account.

Journal entry for 13th transaction would be -

Cash a/c Dr. - Rs. 50,000

Interest overdue a/c Dr. - Rs. 5,000

To Ridhi's a/c - Rs. 55,000

Ridhi's a/c will be credited with the 10 % interest due to her at the end of the year.