Journal Entry for Loan Given (original) (raw)
Last Updated : 17 Apr, 2026
The Businesses can also provide loans to any person or entity or any one else.
**A. Loan is given to a person:
**Journal Entry:
**Example: A loan of ₹5,000 has been provided to Dharmesh.
**Solution:
**B. Interest charged and then received on loan given:
There can be a situation where the interest is charged first and then received. There will be two Journal Entries in this case.
**i. Journal Entry: (On charging of interest)
**Example: Interest of ₹250 is charged to Dharmesh on a loan provided to him.
**Solution:
**ii. Journal Entry: (On receiving of interest)
**Example: Interest due ₹250 is received on loan provided to Dharmesh.
**Solution:
Or
**C. Interest received on loan given:
In this case, only a single entry is passed because interest is directly received.
**Journal Entry:
**Example: Interest of ₹250 is charged to Dharmesh on a loan provided to him.
**Solution:
