Question

paid interest on loan to Mr hemant Rs 400 /- by cheque bank of india. journal entry ​

Answer 1

Answer:

Step-by-step explanation:

Ram Chand A/c …. Dr

To Bank A/c

[Being paid Ram Chand by cheque]

Ram Chand A/c Debit because Ram Chand is the (personal Account) and receiver.

Bank A/c Credit because Bank is the [Real Account] and money goes out of the bank.

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