For the interest on overdue
my book entry is
Individual customer A/c Dr.
To Interest / charges A/c
My doubt regarding this entry is
why don't we pass this entry as:
Interest receivable A/c Dr.
To Interest A/c
(Latter entry is my view)
Help me kindly
Both the entries stand correct. the first type of entry is helpful to track as to how much amount is receivable and from which customer. For the later entry it is difficult to track as to how much interest to recover and from which costomer.
CAclubindia
