Question

Intrest collected by bank journal entry

Answer 1

Hi friend,

Journal entry for this :-

Interest A/c-----------Dr.
To Bank A/c
( Being, interest charged or collected by bank )

Explanation :-

Interest reveived or receivable is the amount that has been earned , but which has not yet been received. In views of golden rule , it can be classified in nominal A/c and it can affects two A/c ' Interest A/c' and 'BankA/c' . So , golden rule says all the expeses and losses are debited and all the gains and income credited.

So, this journal entry is appropiate...i hope it helps

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