State giving reasons to which account interest on loan by partner is debited and credited if partner’s capitals are fixed.
State giving reasons to which account interest on loan by partner is debited and credited if partner’s capitals are fixed.
Anurag Pathak Changed status to publish April 9, 2023
Answer:-
Interest on a Loan by the Partner is debited to the Profit and Loss Account since it is a charge against profit and credited to Partner’s Loan Account since it is a gain to a partner as a lender and not as a partner.
Anurag Pathak Changed status to publish April 9, 2023