Accounting entry 2 yr loan

A/c entries 935 views 1 replies

a company acquired a 2 yr loan for 88,911. repayable in 24 months , every 10th of the month 3919 is deducted from the bank a/c. This 3919 includes 3619 (prinicipal) and 300 (interest)

 

Lets assume loan was acquired on 25/4/13 , what will be the entries for loan acruired, accrued interest and direct debit from bank every month.

Should the loan amount repayable within one yr shown separately as current liability and the rest as non current liability.

 

Replies (1)

loan (principal amount ) DR

interest on principal amount a/c Dr

to bank/cash a/c


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