Accrued Interest to Loan account
Hi, We have the Directors Loan with accrued Interest. To record to the General Journal with a credit to the loan account and a debit to an expense account ( Loan Interest) My question is: to proce...
Forum Discussion
Hi Fran_29 , it is correct to show the interest as an expense, as it relates to the period. The credit to the loan account shows that the business owes that amount, and it will remain there until it can be paid. The payment will debit the loan account, reducing the balance.
