Atul, Jetha, and Tarak are partners sharing profits equally. Jetha was given a loan by the firm on 1st July 2022 of ₹ 6,00,000. Books are closed on 31st March, What Journal entries will be passed if

(a) Rate of Interest is not agreed; and

(b) Rate of interest to be charged is agreed @ 10% p.a.?

[Ans: (a) Interest will not be charged. Hence, no Journal entry will be passed; (b) Interest on Loan to Jetha (up to 31st March 2023) – ₹ 45,000.]

Anurag Pathak Changed status to publish April 12, 2023