Homework Answers
* here we are asked to prepare journal entries on investment in FakhryCorporation by Ahmed Corporation in the books of Ahmad Corporation for the year 2016
*also no need to pass any closing entries
*assumed that interest on loan is given per annum
BOOKS OF AHMAD CORPORATION
JOURNAL ENTRIES
date particulars Amount (Dr.) Amount (Cr.)
01/07/2016 Loan to Fakhry Corporation A/c $350000
To Bank $350000
(being loan paid to Fakhry Corporation for an interest @30% p.a.)
31/12/2016 Bank A/c $ 52500
To interest on loan $52500
(being interest on loan received from Fakhry Corporation for six months )
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