Accountancy, asked by janvi5829, 10 months ago

how to deal with interest on capital?

Answers

Answered by Anonymous

Answer:

Interest on capital is an expense to the firm and is debited to the profit and loss appropriation account. Interest is payable to the partners and hence, the partner's capital account is credited with the amount of interest. In case of loss, no interest will be allowed on capital. ·

janvi5829: can plz short this in a one line

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