Q. interest is due to a creditor
entry
interest A/C Dr
to creditor A/C
justify the creditor account according to golden rules of accounting
according to modern concept it is a liability that's why we are crediting it but according to traditional approach its also a personal A/C n rule for personal accont is DR the receiver n Cr the giver ??
pls justify crediting the creditor's A/C for giving what ??
same case for
salary A/C Dr
to outstanding salary A/C
crediting outstanding salary account for giving what (personal account rule- cr the "giver")
i am cleared with the modern concept but golden rules are partially confusing!
help ?
CAclubindia
