Loan and advance interest

Shivani (Learner) (1881 Points)

19 April 2016  

Dear Friends

Suresh takes a loan of Rs. 50,000 from Mahesh. However, Mahesh pays him the amount after deducting the interest in advance for 1 year @ 10% p.a.

what will be the entries in books of Suresh and Mahesh.

Regards

Shivani