what will be the journal entry of -interest on bank overdraft Rs25000

Banks directly charge the interest on Overdraft balance to our account maintained by the Bank.

To record this, we credit Bank A/c maintained by us.

.

Journal Entry:

Overdraft Interest A/c ...Dr. Rs. 25,000

. . To Bank A/c ....................... Rs. 25,000

  • 19
What are you looking for?