Journal Entry for Loan Taken Last Updated : 21 Apr, 2025 Comments Improve Suggest changes Like Article Like Report A business can take an amount of money as a loan from a bank or outsider. In return, the business has to pay interest. A. Loan is taken from a bank or person:Journal Entry: Example: ₹10,000 was taken as a loan from the bank.Solution: B. Interest charged by the bank or person and then paid: There can be a situation where the interest is charged first and then paid. There will be two Journal Entries in this case.i. Journal Entry: (On charging of interest) Example: Bank charged interest of ₹500 on loan taken.Solution: ii. Journal Entry: (On payment of interest) Example: Interest due ₹500 on loan taken is paid.Solution: OrC. Interest paid to bank/person on the loan: In this case, only a single entry is passed because interest is directly paid.Journal Entry: Example: Interest of ₹500 has been paid to the bank on the loan taken.Solution: Comment More infoAdvertise with us S sukantkumar Follow Improve Article Tags : Accountancy Commerce Similar Reads Journal Entry for Income Any monetary benefit arising from the business can be termed as income. Rent received, Commission received, Dividend earned, Interest received, etc are some examples of income. Income is treated as a Nominal account. Cash Account will be increased with the amount received as income, so it will be De 1 min read Journal Entry for Sales and Purchase of Goods Goods are those items in which a business deals. In other words, goods are the commodities that are purchased and sold in a business on a daily basis. Goods are denoted as 'Purchases A/c' when goods are purchased and 'Sales A/c' when they are sold. Goods Account is classified into five different acc 2 min read Journal Entry for Cash and Credit Transactions Transactions related to the purchase and sale of goods can be of two types, Cash or Credit. A. Cash Transactions: Cash transactions are those transactions in which payment is made or received in cash at the time of purchase or sale of goods. Cash transactions can be identified by:When the Name of th 1 min read Journal Entries | Banking Transactions (Part-1) Recording of Banking Transactions:All businesses make many transactions with the bank in their day-to-day activities. Journal Entries related to banking transactions are as follows:1. When cash is deposited in the bank:Journal Entry:  Example: Cash is deposited in the bank ₹10,000.Solution: 2. When 2 min read Journal Entries | Banking Transactions (Part-2) 1. Payment is received through cheque, and a discount is allowed.A. When a cheque is received from a customer, and a discount is allowed to him (Cheque is deposited into the bank on the same day):Journal Entry:  Example: Received a cheque of ₹19,400 from Vishal and deposited it in the bank, and offe 1 min read Journal Entry for Sale and Purchase of Assets Assets (Machinery, Building, Land, etc.) can also be purchased or sold in cash or on credit. Assets purchased are not represented through Purchases but with the name of the Asset.Journal Entry: (When Assets are Purchased) Example: Machinery purchased for cash ₹50,000.Machinery purchased from Vishal 1 min read Journal Entry for Depreciation Depreciation is the decrease in the value of assets due to use or normal wear and tear. Journal Entry:  Example: Depreciation charged on machinery ₹5,000.Solution:  Example: Machinery purchased for ₹20,000.Depreciation charged on machinery @10%.Solution: 1 min read Journal Entry for Discount Allowed and Received A discount is a concession in the selling price of a product offered by a seller to its customers. According to nature, there are two types of discount:A. Discount AllowedB. Discount ReceivedA. Discount Allowed: When at the time of sales or receiving cash, any concession is given to the customers, i 2 min read Journal Entry for Full/Final Settlement A business may allow or receive a discount at the time of full and final settlement of the accounts of debtors or creditors. Journal Entry:  Example:01 April 2022: Purchased goods from Sayeba at the list price of ₹10,000 at a 10% Trade Discount.05 April 2022: Returned goods to Sayeba for the list pr 1 min read Compound Journal Entry: Format, Examples & Advantages What is a Compound Journal Entry?A compound journal entry is a type of accounting entry that involves more than two accounts. Sometimes, two or more transactions relating to one particular account take place on the same date. When certain transactions of the same nature happen on the same date, it i 2 min read Like