Accountancy, asked by shreelabaroi7263, 1 year ago

Interest collected by bank. pass journal entries

Answers

Answered by Anonymous
37
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INTEREST AC DR

TO BANK AC CR

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Answered by adventureisland
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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