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If interest is paid immediately when it becomes due which simple entry may be passed?

Answer and explanation

Correct answer: Interest on loan account debit and bank account credit

If paid immediately interest may be recorded directly as expense and bank payment. Separate credit to loan account is not necessary.

Related tags

Partners-LoanInterest-PaidEntryPartner's Loan AccountPartner S Loan AccountReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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