Computer Science, asked by ks126684, 2 months ago

adjust interest on capital with capital account 5,000=00

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Answered by AmanRatan

Answer:

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

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