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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Parul, Paresh and Rahul are partners in a firm. The firm gave a loan to Rahul on 1st February, 2025 of ₹6,00,000. Interest was agreed to be charged @ 6% p.a. Interest was paid by cheque up to February, 2025 by Rahul on 5th March, 2025 and the balance was yet to be paid by him (due on 5th April, 2025). Pass the Journal entries for interest on the loan to the partner.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| 2025 Mar 5 | Bank A/c Dr. | 3,000 | ||
| To Interest on Loan to Partner A/c | 3,000 | |||
| (Interest for February, 2025 received from Rahul by cheque) | ||||
| 2025 Mar 31 | Rahul’s Loan A/c Dr. | 3,000 | ||
| To Interest on Loan to Partner A/c | 3,000 | |||
| (Interest for March, 2025 charged but not yet received) | ||||
| 2025 Mar 31 | Interest on Loan to Partner A/c Dr. | 6,000 | ||
| To Profit & Loss A/c | 6,000 | |||
| (Interest on loan to Rahul transferred to the credit of Profit & Loss Account) |
Working Notes:
Interest for 2 months (February and March, 2025) = ₹6,00,000 × 6/100 × 2/12 = ₹6,000.
Interest for February (received by cheque) = ₹6,000 × 1/2 = ₹3,000; interest for March (outstanding) = ₹3,000.
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Chapter 1 Q.13 - Accounting for Partnership Firm Fundamentals", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 1 - Accounting for Partnership Firm – Fundamentals.
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