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Loan taken from bank & interest charged?

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Question added by Akshaj P
Date Posted: 2018/03/12
Muhammad Zain
by Muhammad Zain , Accounts Officer , 3S Systems - C.GROUP

When we will take loan then entry:

Bank a/c ------Dr.

Bank Loan a/c ------Cr.

When interest will be charge then entry:

Interest expense a/c -------Dr.

Interest Accrued a/c ------------Cr.

When interest will be pay then entry:

Interest Accrued a/c ---------Dr.

Cash or Bank a/c ------------------Cr.

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