Question

Essar Company has paid debenture interest by cheque 1000. What is it journal entry?

Answer 1

Answer:

First We make due for the payment of interest.

Interst On debenture A/C Dr.

To debenture Holder's A/C

(__________________)

Then We make an entry for paying the amount of interest.

Debenture Holder's A/C. Dr.

To Bank A/C

(___________________)

Explanation:

You can do that due entry if you want. If you cannot do that It'll will be right too.