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Krish and tarun were partners in a firm firm gave a loan of 500000 to tarun on 1 September 2023 interest was agreed to be charged at 9% p.a. tarun paid interest upto 31st January 2024 by cheque on 4th February 2024 and balance was yet to be paid pass journal entries for interest on loan to partner for the year ending 31st march 2024?
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Krish and tarun were partners in a firm firm gave a loan of 500000 to ...



Journal Entries for Interest on Loan to Partner for the year ending 31st March 2024

1. Initial Loan
- Loan to Tarun account Debit 500,000
- To Cash account Credit 500,000

2. Accrual of Interest
- Interest on Loan account Debit 37,500 (500,000 * 9%)
- To Interest Payable account Credit 37,500

3. Payment of Interest
- Interest Payable account Debit 37,500
- To Cash account Credit 37,500

4. Adjusting Entry for Unpaid Interest
- Interest Payable account Debit X
- To Interest on Loan account Credit X
Explanation:
1. Initially, when the loan was given to Tarun, the journal entry was made to reflect the cash received and the loan given.
2. At the end of the accounting period, an accrual entry is made to account for the interest expense that has accumulated but has not been paid yet.
3. When Tarun pays the interest on 4th February 2024, the entry is made to reflect the cash payment and reduce the interest payable.
4. As the interest for the period ending 31st March 2024 was not fully paid by Tarun, an adjusting entry is made to account for the unpaid interest and adjust the Interest Payable account.

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Krish and tarun were partners in a firm firm gave a loan of 500000 to tarun on 1 September 2023 interest was agreed to be charged at 9% p.a. tarun paid interest upto 31st January 2024 by cheque on 4th February 2024 and balance was yet to be paid pass journal entries for interest on loan to partner for the year ending 31st march 2024?
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Krish and tarun were partners in a firm firm gave a loan of 500000 to tarun on 1 September 2023 interest was agreed to be charged at 9% p.a. tarun paid interest upto 31st January 2024 by cheque on 4th February 2024 and balance was yet to be paid pass journal entries for interest on loan to partner for the year ending 31st march 2024? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Krish and tarun were partners in a firm firm gave a loan of 500000 to tarun on 1 September 2023 interest was agreed to be charged at 9% p.a. tarun paid interest upto 31st January 2024 by cheque on 4th February 2024 and balance was yet to be paid pass journal entries for interest on loan to partner for the year ending 31st march 2024? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Krish and tarun were partners in a firm firm gave a loan of 500000 to tarun on 1 September 2023 interest was agreed to be charged at 9% p.a. tarun paid interest upto 31st January 2024 by cheque on 4th February 2024 and balance was yet to be paid pass journal entries for interest on loan to partner for the year ending 31st march 2024?.
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