Journal entry representative personal a/cs query
Sahil (Cost Accountant) (86 Points)
16 April 2012Sahil (Cost Accountant) (86 Points)
16 April 2012
VIJAYKUMAR
(CHARTERED ACCOUNTANT)
(203 Points)
Replied 16 April 2012
The interest portion arises only due to Creditor.Hence he is the giver in this case.Same rule also apply to salary outstanding.
VIJAYKUMAR
(CHARTERED ACCOUNTANT)
(203 Points)
Replied 16 April 2012
The interest portion arises only due to Creditor.Hence he is the giver in this case.Same rule also apply to salary outstanding.
CA Shabeer
(CA, M.com)
(297 Points)
Replied 16 April 2012
here interest is due hence liability is created. while paying entry would be
Creditor
to Bank
here creditor(personal a/c) is receiver hence debited.
In brief while passing due entry we are just creating a liability and not paying hence creditor can not be debited.
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