Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 16 - No. 35)
What accounting entry is used to record bank interest earned on a company's current account?
Debit Bank, Credit Interest Revenue
Debit Interest Revenue, Credit Bank
Debit Bank, Credit Interest Expense
Debit Interest Expense, Credit Bank
Explanation
Interest earned increases the company's bank balance (debit) and revenue (credit).
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