Question

Interest recived from bujju by cheque rupess 10000

Answer 1

Answer:

Explanation:

This is only a journal entry as under:-

Bank A/c Dr    10,000.00

  To Interest A/c         10,000.00

(being interest received from Bijju by cheque and deposited in the bank)

Note :- In some case proprietors open a account "cheques in hand" so that the system will tell how much of cheques he still has in hand and not deposited with the Bank.  In all other cases, it is presumed that after receipt of cheque, the same is immediately deposited in Bank.

Answer 2

Explanation:

Journal entry for received interest of Rs. 1,000 from the bank:

Bank A/c ………………… Dr 1000

To Bank Interest A/c 1000

[Being the received interest from the bank]

Bank A/c debit because the bank is (personal Account) and the receiver, receiver also debit based on the Debit and Credit or Golden Rules.

Interest A/c Credit because the interest is (Nominal Account) and one type of Income and Income is also Credit. Based on the Debit and Credit or Golden Rules.

Rules:

Bank A/c - Personal Account - Receiver - Dr

Interest - Nominal Account - Income - Cr

Golden Rules:

Personal Account:

Debit the Receiver, Credit the Giver

Real Account:

What cames in Debit and what Goes out Credit

Nominal Account:

Expenses & Loss Debit, and Income, Profit Credit

I hope this answer helps you.