Partner A deposit $1000 to the bank for the duty to be paid by his other partner. This was a loan given by the partner A.The journal entries would be
Bank A/C Dr $1000
Partner A $1000
(loan given by Partner A)
Duty A/C Dr $1000
Bank A/C $1000
(duty paid through bank)
To record the journal entries for the given situation, we first need to understand the transactions involved.
1. Partner A deposits $1000 to the bank for the duty to be paid by his other partner. This is essentially Partner A lending money to the other partner.
The first journal entry would be:
Bank A/C Dr $1000
Partner A Cr $1000
Explanation:
Debiting the Bank A/C account represents an increase in the bank balance, as Partner A has deposited $1000 to the bank. Crediting Partner A's account records the increase in his liability, as he has given a loan to the other partner.
2. The duty is paid through the bank.
The second journal entry would be:
Duty A/C Dr $1000
Bank A/C Cr $1000
Explanation:
Debiting the Duty A/C account represents an increase in the expense or liability related to duty payments. Crediting the Bank A/C account records the decrease in the bank balance due to the payment made for duty.
It is important to note that the journal entries provided here are based on the given information. However, it is always recommended to consult an accountant or financial professional for specific guidance and accuracy in recording journal entries.