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  3. asap pls (a) the amount of bank loan borrowed is

ASAP pls (a) The amount of Bank loan borrowed is fixed. Whereas the...

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Accounting

ASAP pls

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(a) The amount of Bank loan borrowed is fixed. Whereas the amount of overdrain depends on how much is overdrawn. The limit of overdrawing is an amount agreed by the bank. For bank loan the business is required to make repayment according to agreed terms with the bank but for overdraft the business can deposit cash into the bank account to reduce the overdraft. (b) (i) borrowing of loan on 1 anril onta m ) (ii) interest expense incurred at 31 December 2019 , including the closing entry. Narrations are not required. Murniz Restaurant provided the following information on its interest expense account. REQUIRED (c) Interpret the entries on the following dates. (i) 1 January 2020 On 1 Jan 2020 , the business reversed the adjustment made for interest expense owed in the previous year of $6750. (ii) 1 April 2020 On 1 July 2020 , the business paid the bank interest of $9000 by cheque. (iii) 31 December 2020, relating to the interest expense payable entry

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