Question

Interest due but not received rs 4000
Pass the journal entry

Answer 1

Explanation:

Accrued interest A/c......dr. rs 4000

To interest A/c rs 4000

Answer 2

Answer:

Explanation:

Since in the question, the interest is due but not received so we debit the accrued interest and credit the interest account.

The journal entry is shown below:

Accrued interest A/c Dr $4,000

     To Interest A/c.                   $4,000

(Being interest is due for $4,000)

In this question, it follows accrual basis of accounting which means whether cash is received or not but it is recorded in the books