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-   -   How to prepare journal entry bank transactions (https://www.askmehelpdesk.com/showthread.php?t=624026)

  • Jan 2, 2012, 12:50 AM
    sharisyam
    How to prepare journal entry bank transactions
    I want to prepare a journal entry regarding car loan interest
  • Jan 2, 2012, 08:02 AM
    pready
    To acrue the interest:
    Debit Interest Expense for the amount of interest
    Credit Interest Payable for the same amount

    When the interest is Paid:
    Debit Interest Payable for the amount of interest paid
    Credit Cash for the same amount

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