Answer briefly the following question:
Give the adjusting entry and closing entry for interest on loan taken by a partner from the firm, when the firm follows the Fluctuating Capital Method.

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Solution

Adjusting entry:
Partner's Capital A/C Dr.
To Interest on Loan to Partner A/C

Closing entry:
Interest on Loan to Partner A/C Dr.
To Profit and Loss A/C.

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Answer briefly the following question:Give the adjusting entry and closing entry for interest on loan taken by a partner from the firm, when the firm follows the Fluctuating Capital Method.

Adjusting entry:Partner's Capital A/C Dr.To Interest on Loan to Partner A/CClosing entry:Interest on Loan to Partner A/C Dr.To Profit and Loss A/C.

Answer briefly the following question:
Give the adjusting entry and closing entry for interest on loan taken by a partner from the firm, when the firm follows the Fluctuating Capital Method.

Adjusting entry:
Partner's Capital A/C Dr.
To Interest on Loan to Partner A/C

Closing entry:
Interest on Loan to Partner A/C Dr.
To Profit and Loss A/C.