What is the entry for interest due on loan from directors?

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What is the entry for interest due on loan from directors?

IS it :

Interest due

to loan from directors?

Replies (7)

it's Interest a/c Dr. to Laon A/c

Its like one and the same thing.

 

Interest Accrued A/c---Dr.

To Loan /Loan from Director's A/c

Sunali ..may i knw why u debited interest Accrued ...wat's the reason behind that..plz explain by referring3  Golden rules of Debit & Credit

Originally posted by : sahil singla

Sunali ..may i knw why u debited interest Accrued ...wat's the reason behind that..plz explain by referring3  Golden rules of Debit & Credit

Thanks for reminding me the Golden rules Sahil. It was just by mistake that I wrote 'ACCRUED'. correcting myself. here it goes:

 

 

Interest A/c---Dr.

To Loan /Loan from Director's A/c



P.S. To Err is Human..:-)

thanks to u sunali..i thought i forgot the rules at this stage of CA...that's why i asked u !!

should i take interest due a/c under loans& advances or any other head. I have to pass this enty in tally.

if the interest is accrued but not due then,under loans & advances but if interest is accrued & due then take it under other liabilities

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