Ankit, Bhanu, and Charu are partners in a firm sharing profits and losses equally with a capital of ₹ 2,50,000

Ankit, Bhanu, and Charu are partners in a firm sharing profits and losses equally with a capital of ₹ 2,50,000 each. On 1st October 2022, Ankit and Bhanu gave loans of ₹ 2,50,000 each to the firm whereas Charu took a loan of ₹ 1,00,000 from the firm on the same date. It was agreed among the partners that Charu will be charged interest @ 6% p.a. Interest on loans from partners was paid on 10th April 2023. The firm closes its books on 31st March each year.

Pass the Journal entries in the books of the firm for the year ended 31st March 2023.

[Ans: Interest credited to Loan Accounts of Ankit and Bhanu – ₹ 7500 each; Interest debited to Charu’s Capital Account – ₹ 3,000.]