Ask Experts Questions for FREE Help !
Ask
    alisha_cutee's Avatar
    alisha_cutee Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Apr 12, 2011, 12:00 AM
    Interest received
    How we record interest received in journal, ledger and trail balance?
    If you give me the answer I will be thankfull from you...
    Looking forward for your reply...
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Apr 13, 2011, 07:45 AM

    Debit Cash for the amount received
    Credit Interest Revenue for the amount of interest received
    alisha_cutee's Avatar
    alisha_cutee Posts: 3, Reputation: 1
    New Member
    		  
    #3

    Apr 13, 2011, 11:46 PM
    Comment on pready's post
    Yah it rite... bt I write this answer n ma paper bt they consederd it wrong... n you opinion m rite or they?? n tnx for replying...
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #4

    Apr 14, 2011, 12:10 PM

    My journal entry from my previous post is correct, unless you omitted something.

    For the ledger you will have to post your accounts from the journal to your individual account ledgers, so you would have to post a debit entry to the cash ledger on the day that the interest was received and also post a Credit to the Interest Revenue account ledger for the amount received.

    Then you need to total all of your account balances and prepare a trial balance. I have attached a trial balance in Excel for you so you know what one looks like. It is a listing of your accounts with your balances and you add up the debits to get a total of your debits, and you add up your credits to get your total credits. By the way your total Debits should equal your total Credits.
    Attached Files
  1. File Type: xls Trial Balance.xls (20.0 KB, 110 views)
    2. alisha_cutee's Avatar
    alisha_cutee Posts: 3, Reputation: 1
    New Member
    		  
    #5

    Apr 14, 2011, 10:17 PM
    Comment on pready's post
    Hmm... tnx a lot for answering again...
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Very low interest rate but high interest payment [ 3 Answers ]

My daughter financed a $22k new car at 1% over six years. She figured her interest payment every month won't be very much. When she received her first bank statement she was surprised to find out that $56 go to interest alone every month and we're trying to make sense why the interest payment is so...

Received my w'2s late-but received one and filled [ 1 Answers ]

How can I file last years 2007 and add my other w'2s from last year I received late.. from moving.. I filled one I did recive! But I recently received the last two how do I file them?

How does a financial manager choose between stated interest and an effective interest [ 2 Answers ]

When a borrower is often confronted as a stated interest and an effective interest rate what is the difference and which one should the financial manager recognize as the true cost of borrowing? The effective interest rate is always calculated as if compounded annually. The effective rate is...

Pay it Down -- if the interest on the debt is LOWER than the interest on Savings [ 3 Answers ]

I have student loans in the amount of $20000. Through consolidation and never missing a payment I have the interest loan at 2.50% (simple interest). Montly payment is approx $100. I am getting an APY no a Savings account at 4.75%. I have savings around $5K and growing. I need cash for other...

View more questions Search