Why?
Illustration 4. A, B and Care partners sharing profits and losses equally. A and Chave granted loan
to the firm on 1st October, 2016 of 1,00,000 and 1,50,000 respectively. It is agreed that interest
@9% p.a. will be paid on loan. Books of account of the firm are closed on 31st March every year.
Interest on loan is yet to be paid as on 31st March, 2017. You are required to pass Journal
entries in the books of account of the firm and prepare ledger accounts of the two partners.
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