Give the adjusting entry and closing entry for interest on loan taken by a partner from the firm, when the firm follows the Fluctuating Capital Method.
Give the adjusting entry and closing entry for interest on a loan taken by a partner from the firm, when the firm follows the Fluctuating Capital Method.
Anurag Pathak Changed status to publish April 9, 2023
Answer:-
a) Adjusting Entry:
Concerned Partner’s Capital A/c  …Dr.
To Interest on Loan A/c
( Being the interest due on loan to partner)
b) Closing Entry:
Interest on Loan A/c …Dr.
To Profit and Loss A/c
Anurag Pathak Changed status to publish April 9, 2023
