Question

Interest on investment Dr or cr

Answer 1

Explanation:

The principles of double entry bookkeeping are not easy. It's simple to say that for every debit there is a credit and but when it comes to actually entering transactions into the accounts, it can become tricky to remember if what you are entering is one or the other. It is particularly difficult when you have to enter figures into several accounts (the book of prime entry, the ledger accounts, the control account and the subsidiary ledger).

This article focuses on the trial balance. It is a source of management information and an accuracy check done after the transactions have been input. The trial balance will soon tell you if you've mistyped one entry, forgotten one half of the double entry, or incorrectly balanced an account.