CMA (Final)
26 Points
Joined September 2016
Just one question more, in future years while making repayment of loan taken to start up a business, the loan would be repaid as normally paid as :-
Interest A/c Dr.
Loan A/c Dr.
To Bank A/c
(Being loan installment paid)
????
So that means when we taken loan from bank to start up a business we pass :-
1. Bank A/c Dr.
To Loan A/c
(Being loan taken from bank to start up a business)
2. All Expenses A/c Dr.
To All incomes A/c
To Profit & Loss A/c
(Being Profit made during the year)
3. Profit & Loss A/c Dr.
To Capital A/c
(Being Profit during the year has been transferred to Capital A/c)
and the last one is:-
4. Interest A/c Dr. annual interest
Loan A/c Dr. loan repayment
To Bank A/c installments
(Being loan installment paid)
Is that all or any more entry also we have to pass????