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Journal entry representative personal a/cs query

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sahil ipcc student [ Scorecard : 85]	Posted On 16 April 2012 at 09:57
	Q. interest is due to a creditor entry interest A/C Dr to creditor A/C justify the creditor account according to golden rules of accounting according to modern concept it is a liability that's why we are crediting it but according to traditional approach its also a personal A/C n rule for personal accont is DR the receiver n Cr the giver ?? pls justify crediting the creditor's A/C for giving what ?? same case for salary A/C Dr to outstanding salary A/C crediting outstanding salary account for giving what (personal account rule- cr the "giver") i am cleared with the modern concept but golden rules are partially confusing! help ?

VIJAYKUMAR CHARTERED ACCOUNTANT [ Scorecard : 203]	Posted On 16 April 2012 at 10:51
	The interest portion arises only due to Creditor.Hence he is the giver in this case.Same rule also apply to salary outstanding.


VIJAYKUMAR CHARTERED ACCOUNTANT [ Scorecard : 203]	Posted On 16 April 2012 at 10:53
	The interest portion arises only due to Creditor.Hence he is the giver in this case.Same rule also apply to salary outstanding.

CA Shabeer CA, M.com [ Scorecard : 229]	Posted On 16 April 2012 at 15:19
	here interest is due hence liability is created. while paying entry would be Creditor to Bank here creditor(personal a/c) is receiver hence debited. In brief while passing due entry we are just creating a liability and not paying hence creditor can not be debited.

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