8:- Akhil, Sunil, and Parvesh are partners sharing profits in the ratio of 3 : 2 : 1. Opening balance of loan by Sunil account was Rs 300,000. Interest payable was agreed @ 10% p.a. Interest was paid by cheque up to February, 2025 on 1st March, 2025 and the balance was yet to be paid. Pass the Journal entries for interest on the loan by the partner.
Solution :-
WORKING NOTES :-
(I) Calculation of interest on loan payable to Sunil
From 1st April, 2024 – 28th February, 2025 = 3,00,000 x 10/100 x 11/12 = Rs 27,500
From 1st March, 2025 – 31st March, 2025 = 3,00,000 x 10/100 x 1/12 = Rs 2,500
Total Interest payable to Sunil is Rs 30,000.