Illustration 3
Amit, Bimal and Chaman are partners sharing profits and losses equally. Amit and Chaman
gave loans to the firm on 1st October, 2019 of 1,00,000 and 1,50,000 respectively. It is
agreed that interest @ 9% p.a. will be paid on loan. Books of account of the firm are closed on
31st March every year. Interest on loan is yet to be paid as on 31st March, 2020.
Pass Journal entries in the books of account of the firm and prepare Loan Accounts of the two partners.
olution:
In the Books of Amit Bimal and Shaman
Answers
Explanation:
Journal Entries
1 oct Bank a/c dr 250000
To Amit's Loan a/c 100000
To Chaman's Loan a/c 150000
(Being Amit and Chaman gave loans to firm)
31 Mar Interest on loan a/c (Amit) dr 4500
Interest on loan a/c (Chaman) dr 6750
To bank a/c 11250
(Interest charged by bank)
Loan a/c
Date Particulars Amit Chaman Date Particulars Amit Chaman
Mar31 Interest on Oct 1 by bank a/c 100000 150000
loan a/c 4500 6750