Outstanding interest on loan borrowed is to be added toChoose one optionLoan A/cAsset A/cIncome A/cCash A/c
Question
Outstanding interest on loan borrowed is to be added toChoose one optionLoan A/cAsset A/cIncome A/cCash A/c
Solution
The outstanding interest on a loan borrowed should be added to the Loan Account. This is because the interest that accrues on a loan increases the amount of the loan, or the liability, that the borrower owes to the lender. Therefore, it should be added to the Loan Account.
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