Interest on partner's loan

why is interest on partner's loan debited to p&l appr. a/c?{this treatment has been done in icai cpt as well as ipcc module}

Replies (2)

Because Interest is the expenses.  and as per the one of the golden rule of accounting - All expenses should be debit and credit the all income.

So therefor Interest on Partners loan will debited to Profit and Loss account.

 

Thanks

Shankar 

Interest is the expenses. so therefor it is debited to Profit and Loss account as per the golden rule of accounting.

one of the Golden Rule of accounting.

- All the expenses should be debited and all income should be credited.

 

Thanks

Shankar

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details