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Part B It was agreed among the partners that Charu will be charged Interest @ 6% pa. Interest on loan from partners was paid on 10th April 2020. The firm closes its books on 31st March each year. Pass Journal entries in the books of the firm for the year ended 31st March 2020.?
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Part B It was agreed among the partners that Charu will be charged Int...
Journal Entries for Interest Payment on Loan from Partners
The following journal entries need to be passed in the books of the firm for the year ended 31st March 2020:
1. Accrual of Interest Expense:
Date: 31st March 2020
Particulars: Interest Expense A/c Dr
To Partners' Loan A/c
(Being Interest Expense accrued on the loan from partners)
Amount: Interest amount calculated @ 6% p.a. on the loan from partners
2. Payment of Interest Expense:
Date: 10th April 2020
Particulars: Partners' Loan A/c Dr
To Bank A/c
(Being payment made towards interest on loan from partners)
Amount: Interest amount calculated @ 6% p.a. on the loan from partners
Explanation:
The first entry is passed on 31st March 2020 to accrue the interest expense on the loan from partners for the year ended 31st March 2020. As per the agreement among the partners, the firm is liable to pay interest @ 6% p.a. on the loan from partners. Therefore, the interest expense is debited to the Interest Expense A/c and credited to the Partners' Loan A/c.
The second entry is passed on 10th April 2020 when the payment towards interest on the loan from partners is made. The payment is made through bank, therefore, the Partners' Loan A/c is debited and Bank A/c is credited.
Conclusion:
The above journal entries are necessary to record the interest payment on loan from partners in the books of the firm for the year ended 31st March 2020. The first entry is passed on 31st March 2020 to accrue the interest expense, while the second entry is passed on 10th April 2020 when the payment is made.
The following journal entries need to be passed in the books of the firm for the year ended 31st March 2020:
1. Accrual of Interest Expense:
Date: 31st March 2020
Particulars: Interest Expense A/c Dr
To Partners' Loan A/c
(Being Interest Expense accrued on the loan from partners)
Amount: Interest amount calculated @ 6% p.a. on the loan from partners
2. Payment of Interest Expense:
Date: 10th April 2020
Particulars: Partners' Loan A/c Dr
To Bank A/c
(Being payment made towards interest on loan from partners)
Amount: Interest amount calculated @ 6% p.a. on the loan from partners
Explanation:
The first entry is passed on 31st March 2020 to accrue the interest expense on the loan from partners for the year ended 31st March 2020. As per the agreement among the partners, the firm is liable to pay interest @ 6% p.a. on the loan from partners. Therefore, the interest expense is debited to the Interest Expense A/c and credited to the Partners' Loan A/c.
The second entry is passed on 10th April 2020 when the payment towards interest on the loan from partners is made. The payment is made through bank, therefore, the Partners' Loan A/c is debited and Bank A/c is credited.
Conclusion:
The above journal entries are necessary to record the interest payment on loan from partners in the books of the firm for the year ended 31st March 2020. The first entry is passed on 31st March 2020 to accrue the interest expense, while the second entry is passed on 10th April 2020 when the payment is made.
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Part B It was agreed among the partners that Charu will be charged Interest @ 6% pa. Interest on loan from partners was paid on 10th April 2020. The firm closes its books on 31st March each year. Pass Journal entries in the books of the firm for the year ended 31st March 2020.?
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Part B It was agreed among the partners that Charu will be charged Interest @ 6% pa. Interest on loan from partners was paid on 10th April 2020. The firm closes its books on 31st March each year. Pass Journal entries in the books of the firm for the year ended 31st March 2020.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Part B It was agreed among the partners that Charu will be charged Interest @ 6% pa. Interest on loan from partners was paid on 10th April 2020. The firm closes its books on 31st March each year. Pass Journal entries in the books of the firm for the year ended 31st March 2020.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Part B It was agreed among the partners that Charu will be charged Interest @ 6% pa. Interest on loan from partners was paid on 10th April 2020. The firm closes its books on 31st March each year. Pass Journal entries in the books of the firm for the year ended 31st March 2020.?.
Part B It was agreed among the partners that Charu will be charged Interest @ 6% pa. Interest on loan from partners was paid on 10th April 2020. The firm closes its books on 31st March each year. Pass Journal entries in the books of the firm for the year ended 31st March 2020.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Part B It was agreed among the partners that Charu will be charged Interest @ 6% pa. Interest on loan from partners was paid on 10th April 2020. The firm closes its books on 31st March each year. Pass Journal entries in the books of the firm for the year ended 31st March 2020.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Part B It was agreed among the partners that Charu will be charged Interest @ 6% pa. Interest on loan from partners was paid on 10th April 2020. The firm closes its books on 31st March each year. Pass Journal entries in the books of the firm for the year ended 31st March 2020.?.
Solutions for Part B It was agreed among the partners that Charu will be charged Interest @ 6% pa. Interest on loan from partners was paid on 10th April 2020. The firm closes its books on 31st March each year. Pass Journal entries in the books of the firm for the year ended 31st March 2020.? in English & in Hindi are available as part of our courses for Commerce.
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Here you can find the meaning of Part B It was agreed among the partners that Charu will be charged Interest @ 6% pa. Interest on loan from partners was paid on 10th April 2020. The firm closes its books on 31st March each year. Pass Journal entries in the books of the firm for the year ended 31st March 2020.? defined & explained in the simplest way possible. Besides giving the explanation of
Part B It was agreed among the partners that Charu will be charged Interest @ 6% pa. Interest on loan from partners was paid on 10th April 2020. The firm closes its books on 31st March each year. Pass Journal entries in the books of the firm for the year ended 31st March 2020.?, a detailed solution for Part B It was agreed among the partners that Charu will be charged Interest @ 6% pa. Interest on loan from partners was paid on 10th April 2020. The firm closes its books on 31st March each year. Pass Journal entries in the books of the firm for the year ended 31st March 2020.? has been provided alongside types of Part B It was agreed among the partners that Charu will be charged Interest @ 6% pa. Interest on loan from partners was paid on 10th April 2020. The firm closes its books on 31st March each year. Pass Journal entries in the books of the firm for the year ended 31st March 2020.? theory, EduRev gives you an
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