Question

Journal entry for:
A company earned interest from bank on 31/3/2019
but its credited only on 4th april 2019
2019​

Answer 1

On date 31/3/2019

Bank A/c                                           Dr.          amount

   To Interest from bank A/c                                           amount

On date 4/4/2019

Interest from bank A/c                    Dr.           amount

    To Profit and loss A/c                                                 amount

Explanation:-

On date 31st March, we received the interest from the bank so bank A/c get debited and interest from bank A/c is credited

But the company credited the interest on 4 April 2019 therefore the interest on the bank is credit on the 4th instead of the 31st.

Thus the interest from bank A/c is debited and credited to Profit and loss A/c