Question

4. Write the treatment of interest on Capital while preparing final accounts.​

Answer 1

Bcjdkajgx. Xbjxkakhs d dnkdks

Answer 2

Answer:

Explanation:

Interest on Capital has the following two effects on final accounts:

                         SOLE PROPRIETOR SHIP

• It is an expense of the business, therefore; it will be recorded on the debit side of Profit and Loss Account.

• On the other hand, it is an income of the owner, therefore; it will be added in the Capital Account in Balance Sheet.