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Interst on loan

This query is : Resolved 
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(Querist)
12 September 2012 Sir i received a loan from my friend & give him interest what will be the entry?
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Aditya Maheshwari

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Aditya Maheshwari (Expert)
12 September 2012 same like provision for expenses and payment of creditors.
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CA Ayush Agarwal

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CA Ayush Agarwal (Expert)
12 September 2012 Cash Dr.
to Friend Name a/c

interest dr.
to friend name a/c


friend name a/c dr.
to cash
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