Question

State the closing entries for:

1. Rent paid to a partner.
2. Interest on loans allowed to partners.

Answer 1

Date	Particular	L.F.	Debit (₹)	Credit (₹)
(a)	Profit and Loss A/c   ...Dr.		xxx	-
	To Rent A/c		-	xxx
	(Being closing rent paid to the partner’s A/c.)
(b)	Profit and Loss A/c   ...Dr.		xxx	-
	To Interest on Partner’s Loan A/c		-	xxx
	(Being closing of interest on partner’s loan A/c.)