Please give the journal entry for this transaction: Ram from whom a loan of 10000 has been taken and to whom the amount is to be paid in five equal installments together with interest at 10%p.a.The first installment is paid.

and what would we do if we had to pay the second,third and successive installments.Please answer its urgent.Thank you.

Journal

Date

Particulars

L.F.

Debit

Rs

Credit

Rs

Year 1

Loan A/c

Dr.

2,000

Interest A/c

Dr.

1,000

To Bank A/c

3,000

(Repayment of loan along with interest)

Year 2

Loan A/c

Dr.

2,000

Interest A/c

Dr.

800

To Bank A/c

2,800

(Repayment of loan along with interest)

Year 3

Loan A/c

Dr.

2,000

Interest A/c

Dr.

600

To Bank A/c

2,600

(Repayment of loan along with interest)

Year 4

Loan A/c

Dr.

2,000

Interest A/c

Dr.

400

To Bank A/c

2,400

(Repayment of loan along with interest)

Year 5

Loan A/c

Dr.

2,000

Interest A/c

Dr.

200

To Bank A/c

2,200

(Repayment of loan along with interest)

Year

Amount Outstanding

Interest @ 10% p.a.

1

Rs 10,000

2

Rs 8,000

3

Rs 6,000

4

Rs 4,000

5

Rs 2,000