47 for a partnership firm interest on capital is
a. an expense
b. an income
c. a loss
d. all of these
Answers
Answered by
0
Answer:
d all of these
Explanation:
Interest on capital is considered as an expense for the business and is added to the owner's capital, which increases the overall capital of the owner in the business and loss to business also
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Answered by
1
Explanation:
Interest on capital is another expense for a firm that is debited to the profit and loss appropriation account. Interest is thereby payable to the partners, for this the partner's capital account is credited with the amount of interest. In case of loss, no interest is to be served on capital. Capitalizing Interest.
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