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    sharisyam's Avatar
    sharisyam Posts: 1, Reputation: 1
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    #1

    Jan 2, 2012, 12:50 AM
    How to prepare journal entry bank transactions
    I want to prepare a journal entry regarding car loan interest
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Jan 2, 2012, 08:02 AM
    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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