Question

give adjusting entry And closing entry for interest on capital allowed to a partner when the firm follows the fixed capital method​

Answer 1

Answer:

giveadjusting entry And closing entry for interest on capital allowed to a partner when the firm follows the fixed capital method

Answer 2

Answer:

Journal entry for the adjusting and closing entry for interest on capital allowed to a partner under fixed capital method is as follows:

Explanation:

• Adjusting entry:

Partner's Capital A/C Dr.

To Interest on Loan to Partner A/C

• Closing entry:

Interest on Loan to Partner A/C Dr.

To Profit and Loss A/C.