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If only principal payment is recorded in the loan account but interest payment appears separately in bank, what should be checked in reconciliation?

Answer and explanation

Correct answer: Whether interest due was created and expense recorded

Interest due entry should be completed before interest payment. Exam tip: reconcile bank payment with expense entry.

Related tags

ReconciliationInterest PaymentLoan AccountPartner's Loan AccountPartner S Loan AccountReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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