Question { 24144 }

Hi Everybody,

Can anybody tell me the journal entry for below question,

Charged interest on Capital Rs.1,500.00

Thanks,

Answer

interest on capital account dr 1500.00
To capital account 1500.00

Dear friend interest on capital is a indirect expense of
company. So interest on capital should be show to the debit
side of P&L A/c and added to capital A/c in liabilities
side of balance sheet.

Question { Genpact, 9637 }

What is the rule of accounting

Answer

There are one rule of Acconuting.which is known as Golden
rule
For Personal A/c:
Debit the receiver
Credit the giver
For Real A/c:
What comes in Debit
What goes out Credit
For Nomainal A/c:
All expenses & losses are Debit
All income & gains are Credit