Interest collected by bank. pass journal entries
Answers
Answered by
37
HEY...
U R ANSWER ♠..
⤵⤵⤵⤵⤵
INTEREST AC DR
TO BANK AC CR
MAYBE IT HELPS YOU ☺☺☺☺
U R ANSWER ♠..
⤵⤵⤵⤵⤵
INTEREST AC DR
TO BANK AC CR
MAYBE IT HELPS YOU ☺☺☺☺
Answered by
7
Interest A/c...............................Dr
To Bank A/c
Explanation:
In this question the bank has collected interest from the firm. Which means the money is being reduced from the bank account. Based on the golden rule of accounting we will credit the bank account due to the fact that cash is being reduced.
And we will debit the interest account as interest a liability and considered as an expense therefore this liability is reducing based on the golden rule of accounting when liabilities decrease we will debit them therefore debiting the interest account.
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