Question

In profit and loss account on which side will interest on bank deposits & interest on bank overdraft come?​

Answer 1

Explanation:

interest on bank deposit is an earn interest so it will come cr side P&L a/c and Appears assets side of bls.

interest on overdraft is an outstanding interest so it will Dr to P&L a/c and Appears in liability side of bls.

Answer 2

Answer:

Explanation:

Credit side because it is an income

And according to third rule: credit all the gains and income

And interest on bank overdraft would come on debit side as it is an liability/expense