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Loan Given is our asset on which we will earn interest income

 

Entries are as follows

 

Entry for Loan Given

Loan A/c Dr

           To Bank

 

Entry for Interest Income

Loan A/c Dr

            To Interest Income

 

Entry for Amount Received on Maturity of Loan

 Bank A/c Dr

            To Loan A/c

 


 

Pass Entries

Loan given to Vimal Trading Co Rs 200000

Vimal Trading Co repaid in 4 monthly  instalments of 60000 each (50000 principal + 10000 interest)

View Answer
  1. Accounts and Finance
  2. Step 2 Passing Routine Entries
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CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 7 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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