Question

how will find the interest on capital in single entry system

Answer 1

It is calculated by percentage of interest given in the sum
If date is given calculate from that period
For eg. A introduced additional capital on 1 oct rs. 20000 rate of interest is 10%
Ans . 20000*10/100*6/12
(Here 6/12 bcoz its period is 6 months)
Interest = rs.1000

And if date is not given assume the period is 6 months

Answer 2

by preparing profit and loss account statement