Question

Interest on loan entry in profit and loss appropriation

Answer 1

Answer:

interest on loan a/c --------Dr.

to cash a/c

Answer 2

Answer:

Explanation:

Interest on loan is the amount of interest that is paid by the firm on the amount of loan taken from a partner. It is shown on the debit side of the Profit and Loss Account. ... That is, only after deducting the interest on loan, the remaining profits will considered for appropriation among the partners