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Jurnal for interest chrgd by bank-
Interest a/c dr
To bank
Bank is real a/c
Que is why bank is credit as d rule is
dr d reciever
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Answer Posted / n srinivas rao
As the Interest Expense charged by the Bank is an expense
and comes under Nominal Account. As per nominal
account "All expenses debit".
In this transaction Bank is not a personal account, it is a
Real account means it is as Asset to us and the Bank
charges are getting deducted from this Account. So As per
Real Account "What goes out Credit"
That is why the entry should be as follows
Interest exps A/C Debit
Bank A/C Crdit
| Is This Answer Correct ? | 6 Yes | 1 No |
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