# Ankit Bhanu and Charu are partners in a firm sharing profits and losses equally with capital of 2,50,000 each. On 1st October, 2019, Ankit and Bhanu gave loans of 2,50,000 each to the firm whereas Charu took a loan of 1,00,000 from the firm on the same date. It was agreed among the partners that Charu will be charged Interest @ 6% p.a. Interest on loan from partners was paid on 10th April, 2020. The firm closes its books on 31st March each year. Pass the Journal entries in the books of the firm for the year ended 31st March, 2020

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Ankit, Bhanu and Charu are partners in a firm sharing profits and losses equally with capital of ` 2,50,000 each. On 1st October, 2019, Ankit and Bhanu gave loans of ` 2,50,000 each to the firm whereas Charu took a loan of ` 1,00,000 from the firm on the same date. It was agreed among the partners that Charu will be charged Interest @ 6% p.a. Interest on loan from partners was paid on 10th April, 2020. The firm closes its books on 31st March each year. Pass the Journal entries in the books of the firm for the year ended 31st March, 2020
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Pass journal entries

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Ankit, bhanu and charu are partners
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1. Interest on Ankit’s Loan a/c - 7,500

To Ankit’s Loan a/c - 7,500

2. Interest on Bhanu’s Loan a/c - 7,500
To Bhanu’s Loan a/c - 7,500

3. P&L Appropriation a/c         - 7,500

To Interest on Ankit’s Loan - 7,500

4. P&L Appropriation a/c         - 7,500

To Interest on Bhanu’s Loan - 7,500

5. Bank a/c                                 - 3,000

To Interest on Charu’s Loan - 3.000

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