Journal entry

This query is : Resolved

jitu (Querist)
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18 February 2015 dear experts
what entry should passed in case interest received from Ram

(1) cash a/c dr 500
To ram 500

or

(2) cash a/c dr 500
to interest a/c 500

which entry is correct (1) or (2)

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 February 2015 Two method.

1)

Ram A/c Dr
To Interest A/c
(Being interest receivable from Ram)

Bank/Cash A/c Dr
To Ram A/c
(Being amount received from Ram Towards interest)

2) Bank/Cash A/c Dr
To Interest A/c

(Being Interest received from Ram)

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jitu

jitu (Querist)
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16 June 2015 dear sir

but as per golden rule of account for personal a/c

debit ot receiver so i confuse by one again]
plese suggest:-

Ram a/c dr.
To interest

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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18 June 2015 Debit the receiver.

1st entry is the due entry being passed.

See second entry when Ram is giving the money, he is being credited. "Credit the Giver".

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