Restaurant
Accruing Monthly Loan Interest
Recording interest that has accumulated on the restaurant's bank loan before the payment date.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Interest Expense | Expense (+) | 300.00 | - |
| Interest Payable | Liability (+) | - | 300.00 |
💡 Accountant's Note
Under the accrual basis, interest is an expense in the month it accrues, not when it is paid. This ensures the P&L shows the true monthly cost of debt.
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