Question

Charge interest on drawing Ro 2380
and
paid intrest on capital Rs 3450
(journal entry please)​

Answer 1

Answer:

1. Cash account. Dr. 2,380

To interest on drawings. 2,380

(being interest on drawing is charged)

2. Interest on capital account Dr. 3,450

To cash account 3,450

(being interest on capital is paid)