Journal Entry for Interest on Loan

All companies all over the world take debt and when the company takes it from the creditors, banks or financial institutions than it has to pay interest on that debt at regular intervals which may be monthly, quarterly or yearly. Given below is the journal entry for interest on loan –

Interest on loan Account Dr

To Cash Account

Since money has gone from the company to the creditor it is credited in the above entry and also per the rule expenses are debited which has also been done in the above entry.

0 comments… add one

Leave a Comment

Related pages

similarities between public finance and private financedisadvantages of horizontal analysishow to find errors in trial balancehypoticationadvantages and disadvantages of social media advertisingpure conglomerate mergerskimming vs penetration pricingcrr and slr differenceadvantages and disadvantages of oligopoly competitionsignificance of foreign exchange reservesadvantages and disadvantages of a planned economydefinition of complements in economicssystematic risk and unsystematic risk definitionexample of explicit costcharacteristics of urbanisationcash inflow examplesunitary elastic demand definitionmoney market hedge advantages disadvantagesautocratic leadership style disadvantagesasset revaluation journal entriesaudit opinion unqualifiedlaw of marginal diminishing utilitymeaning of escrow accountadvantages of command economyadvantages and disadvantages of lifo and fifo in accountingloan capital advantages and disadvantagesexamples of skimming pricingadvantages of conglomerate diversificationdebentures in hindidebentures as a source of financeconglomerate diversification strategydu pont identitywhat is autocratic leadershipbarder and tradedefinition of accrued incomecountries with centrally planned economymarketing skimming definitioncarriage inwardsdebit card wikipediatypes of elasticity of demand in economicstally full formdisadvantages of m&abundling pricing strategy exampleswhat are the advantages and disadvantages of certificate of depositdirect quote fxdirect and indirect quotation examplescapital budgeting techniques advantages and disadvantagestypes of factoring methodsswot analysis disadvantagesexample of skimming pricingqualified and unqualified audit reportadvantages of unrelated diversificationwhat is the disadvantage of globalizationwhat is the difference between accounts payable and bills payablespot rate meaningimplicit explicit costcost plus pricing advantages and disadvantagesmarket skimming pricing strategycompare socialism and capitalismconglomerate corporationfull form slrconservatism concept accountingadjusting entry for prepaid insurancemarket skimming pricing strategy exampleswhat is the meaning of consignmentwhat is a predeterminationmeaning of drawee and drawerdisadvantages of competitive pricingfactors that affect elasticity of demanddifference between capital expenditure and expense