Question

Recived interest credited ti bank

Answer 1

In journal entry :-

Bank A/C Dr.

To Interest Received A/C

Answer 2

Interest recieved , credited in bank

Im giving you all Required entries other than a single entry

This transaction affects two accounts.... Interest Receivable a/c (actual interest being received ) .. Bank account (amount is recieved in the form of cheque)

Interest Receivable account and
Bank accounts are real accounts (cash and dividend Receivable account are assets; all assets and Liabilities come under Real account)

The Three golden rules of accounting are..

Personal Account : -Debit the receiver credit the giver

Real Account : Debit what comes in , credit what goes out

Nominal Account: Debit All expenses and losses, Credit All incomes and gains


In contention with the above rules..

Bank a/c should be debited (because cash(bank) balance is increasing)

Interest Receivable account should be credited (because due entry is being reversed)

If there is any recovery .. the entry should be reversed to that extent....

The due entry will be...

Interest Receivable account Dr xxxx

To Interest account xxxx