Accountancy, asked by harmansinghdhindsa22, 9 months ago

Jounal entry for interest due but not received

Answers

Answered by sabinamin14
10

Answer:

Since in the question, the interest is due but not received so we debit the accrued interest and credit the interest account.

The journal entry is shown below:

Accrued interest A/c Dr $4,000

   To Interest A/c.                   $4,000

(Being interest is due for $4,000)

In this question, it follows accrual basis of accounting which means whether cash is received or not but it is recorded in the books

hope it helps you

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Answered by nancychaterjeestar29
0

Answer:

A journal entry is act of the keeping or making records of any transactions either economic or the non-economic.

Transactions are listed in the accounting journal that shows the company's debit and credit balances. The journal entry can also consist of several recordings, each of which is either the debit or a credit. The total of the debits must equal total of the credits, or the journal entry is considered unbalanced.

Journal entries can record unique items or the recurring items such as depreciation or bond amortization. In the accounting software, journal entries are usually entered using the separate module from accounts payable, which typically has its own subledger, that the indirectly affects the general ledger. As a result, journal entries are directly change the account balances on general ledger. A properly documented in journal entry consists of correct date, amount(s) that will also be debited, amount that will be credited, narration of transaction, and unique reference number.

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