Question

Q2 Amount of interest paid to 3 points
Ali should be debited to: *
O Cash A/C
Ali A/C
Interest A/C
O A/C Payable​

Answer 1

Answer:

amount paid to Ali as interest should be debited with interest account

Answer 2

The answer is interest a/c:

Explanation:

Interest A/C

• On the income statement, interest expenditure is a non-operating item.
• It denotes the amount of interest that will be paid on any borrowings, including bonds, loans, convertible debt, and lines of credit.
• It is computed by multiplying the interest rate by the debt's outstanding principal amount.

• Interest Payable is a liability account that appears on a company's balance sheet.
• Financial statements are critical for financial modelling and accounting.