Question

Interest received from Ram will be credited to ---------- account.​

Answer 1

Concept Introduction:

The amount of money received by a lender or financial organization in exchange for lending money is referred to as inte

Given Information:

It is given that from Ram interest is received.

To Find:

We have to find interest received from Ram will be credited or debited.

Solution:

As per the standard accounting rule, 'debit the receiver, credit the giver,' we credit the interest as it is received. As a result, the entry is complete, with the cash account debited and the interest account credited.

Answer 2

Interest Recieved from Ram will be credited to interest account.

Journal Entry when interest recieved will be -

Cash A/C DR

              To Interest A/C

(being interest recieved )

Note - As cash is our asset and it is increasing because we are recieving interest so it will be debited as if asset increases it will be debited and if it decreases it will be credited and interest is recieved and it is  a income and it is reducing so it will be credited.