18 December 2011
what will be the journal entry for interest earned on an asset and why? as per my books it is ASSET A/C....DR TO INTEREST A/C
HERE INTEREST IS NOMINAL A/C, SO IT IS CREDITED BUT WHY IS ASSET IS DEBITED??? HERE BY EARNING INTEREST, THE VALUE OF THE CONCERNED ASSET IS NOT INCREASING THEN WHY IT IS DEBITED???
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