Question

$A,B$ and $C$ are partners sharing profits and losses equally. $A$ and $C$ have granted loan to the firm on 1st October, 2016 of $Rs.1,00,000$ and $Rs.1,50,000$ respectively. It is agreed that interest @$9\%$ p.a. will be paid on loan. Books of account of the firm are closed on 31st March every year. Interest on loan is yet to be paid as on 31st March, 2017. You are required to pass Journal entries in the books of account of the firm and prepare ledger accounts of the two partners.

Answer 1

Journal Entries

Bank A/c Dr. 2,50,000

To A's Loan A/c 1,00,000

To C's loan A/c 1,50,000

(Being loan received from partners)

Interest on loan A/c Dr. 11,250

To A's loan A/c 4500

To B's loan A/c 6750

(Being interest on loan received)

Profit and loss A/c Dr. 11,250

To Interest on partners loan A/c 11,250

(Being interest on loan transferred to p&l account)

A's Loan Account

Particulars	Amount	Particulars	Amount
to bal c/d	1,04,500	By bank a/c	1,00,000
		By interest on partners' loan a/c	4500
Total	1,04,500	Total	1,04,500

B's Loan Account

Particulars	Amount	Particulars	Amount
To bal c/d	1,56,750	By Bank A/c	1,50,000
		By interest on capital	6750
Total	1,56,750	Total	1,56,750