Treatment of emi against term loan

Bapun Dasgupta (student) (122 Points)

29 June 2016  

A Partnership Firm has been granted a certain amount of Term Loan. The Firm pays regular EMIs which are debited in the bank statement. . Should the accounting entry be as follows :

Term Loan A/c. .........Dr   (Amount of EMI)

To Bank A/c.


Please advise.