Akhil, Sunil, and Parvesh are partners sharing profits in the ratio of 3 : 2 : 1. Sunil had given a loan to the firm on 1st November 2022 of ₹ 4,00,000
Akhil, Sunil, and Parvesh are partners sharing profits in the ratio of 3 : 2 : 1. Sunil had given a loan to the firm on 1st November 2022 of ₹ 4,00,000. Interest payable was agreed @ 12% p.a. Interest was paid by cheque up to February 2023 on 1st March 2023 and the balance was yet to be paid.
Pass the Journal entries for interest on the loan by the partner.
[Ans: Interest on Loan by Sunil up to February 2023 – ₹ 16,000; Interest transferred to Profit and Loss a/c – ₹ 20,000.]
Anurag Pathak Changed status to publish March 28, 2024
Solution:-
1st Method:-
Working Notes:-
2nd Method:-
Anurag Pathak Changed status to publish April 10, 2024
