Question

what are the journal entries for interest on calls in arrears and calls in advance????

there are three entries for each i guess: 1.for interest due 2.for receipt or payment of interest 3.for transfer of interest to profit and loss A/c.

do we have to pass all the three entries every time or only the entry for receipt or payment of interest as the case may be??????????????

please answer this at the earliest have a test in school...pls its important......!!!!

Answer 1

cash / Bank ac dr XXX
TO interest ac XXX