I had a question for accounting professionals . When we earn income due to interest earned from saving accounts or CDS which accounts are suppose to be credited . I know that the Bank Checking account or one of the other equity account will be debited but which account to credit . I mean which internal assest has be consumed for this income generation.
2007-08-09 17:19:20 · 2 answers · asked by s_k_latif 3 in Business & Finance ➔ Other - Business & Finance
When you earn income due to interest earned from saving accounts, your savings a/c will go up by the amt of the interest earned. Your double-entry would be:
DR Savings account
CR Interest income
This is from the point of view of the savings a/c owner.
2007-08-09 21:36:54 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋
Intrest earned on savings is paid quarterly.
Certificates rates may vary depending upon your terms.
2007-08-10 00:35:41 · answer #2 · answered by yp_will_chicago_369 6 · 0⤊ 0⤋