journalise the following events:
1. Allow interest on capital of 2,00,000 @ 10% pa.
2. Charge interest on drawings of 15,000 @ 10% p.a.
3. Took a loan of 40,000 from Anoop Chopra @15% p.a.
4. Interest for 12 months is due on the loan of Anoop Chopra.
Answers & Comments
Answer:
Here are the journal entries for the given events:
1. Interest on Capital A/c Dr. 20,000
To Capital A/c 20,000
(Being interest on capital allowed @ 10% p.a.)
2. Drawings A/c Dr. 1,500
To Interest on Drawings A/c 1,500
(Being interest charged on drawings @ 10% p.a.)
3. Cash/Bank A/c Dr. 40,000
To Anoop Chopra A/c 40,000
(Being loan taken from Anoop Chopra @15% p.a.)
4. Interest on Loan A/c Dr. 6,000
To Anoop Chopra A/c 6,000
(Being interest due on loan from Anoop Chopra for 12 months @15% p.a.)