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-   -   Treatment of interest on loan (https://www.askmehelpdesk.com/showthread.php?t=70625)

  • Mar 10, 2007, 09:19 AM
    warzy
    Treatment of interest on loan
    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 .
  • Mar 10, 2007, 12:10 PM
    bunnyKutty
    Debit Interest on Partner's loan account
    Credit Interest payable account

    When interest on loan is paid:
    Debit Interest payable
    Credit Cash

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