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there is something that i wish to understand based on my pass year paper that i have done last week.
its an adjustments for bank loan given that the bank loan is 150,000 ( 10% p.a.)
"iv . the remainder of the interest on bank loan is still outstanding"
from this statement does it mean that i have to debit interest expenses(P/L) and credit interest payable (B/S)?
Or this is what is consulted from my tutor, she said that when there is an outstanding interest payment, you will pay it immediately, so she said that i only have to record in interest expenses(P/L) and not credit interest payable (B/S), because it has already been paid for but not recorded.
if this is the case, wont there be a double entry involving in this adjustment?
(p/s. this is my first time posting here, so pardon my any mistake)
Yours
its an adjustments for bank loan given that the bank loan is 150,000 ( 10% p.a.)
"iv . the remainder of the interest on bank loan is still outstanding"
from this statement does it mean that i have to debit interest expenses(P/L) and credit interest payable (B/S)?
Or this is what is consulted from my tutor, she said that when there is an outstanding interest payment, you will pay it immediately, so she said that i only have to record in interest expenses(P/L) and not credit interest payable (B/S), because it has already been paid for but not recorded.
if this is the case, wont there be a double entry involving in this adjustment?
(p/s. this is my first time posting here, so pardon my any mistake)
Yours