Emin Radwan In: Category - Journal EntriesWhat is interest received from bank journal entry?interest received from bankjournal entry ShareFacebook1 AnswerVotedRecent Aastha 2020-08-31T07:11:37+05:30Added an answer on August 31, 2020 at 7:11 am Journal entry for an interest received from a bankThe interest received from the bank can be transacted in the journal book using the modern rules of accounting as – Why Bank A/c is Debited?when the interest income is accrued it increases the bank balance and the bank balance is recorded as a current asset. Hence, its debited since interest income increases the entity’s bank balance.Why is Interest Received Credited?The interest received is an income for an entity and as per the modern rules of accounting, we credit the increase in income. Therefore, we credit interest income a/c.The interest received from the bank can be transacted in the journal book using the golden rules of accounting as –Why is Bank A/c Debited?Bank Account is classified as a “personal account” and as per the golden rule of accounting for personal account “we debit the receiver and credit the giver.”And hence, we debit the bank account.Why is income received from bank credited?Income received from a bank can be classified as “nominal account” and as per the golden rule of accounting for nominal account “we debit all expenses and losses and credit all incomes and gains.” so, interest received from the bank is credited.For Example,Mr Alex has a savings account with ABC Bank. The balance at the end of the first quarter with the bank is 1,00,000. The bank offers 6% p.a interest on such balance. Journalise the same.Solution :Journal of Mr AlexParticularsDebit/CreditAmountAmountInterest received from a bankBank A/c DrDebit1,500 To Interest Income A/cCredit1,500(Being interest @ 6% p.a received from the bank for the first quarter) I have tried to logically explain the entry for interest income from the bank. I hope it helps.Aastha Mehta. 0Reply Share ShareShare on FacebookShare on TwitterShare on LinkedInShare on WhatsAppLeave an answerCancel replyYou must login to add an answer. Username or email* Password* Captcha* Click on image to update the captcha. Remember Me! Forgot Password?