Ask Me Help Desk
>
Business & Careers
>
Accounting
> Treatment of interest on loan
PDA
View Full Version :
Treatment of interest on loan
warzy
Mar 10, 2007, 09:19 AM
What is the correct accountring treatment of interest on partnesrs loan,i.e which account is to be debited and the account to be credited .
bunnyKutty
Mar 10, 2007, 12:10 PM
Debit Interest on Partner's loan account
Credit Interest payable account
When interest on loan is paid:
Debit Interest payable
Credit Cash