Question

I - Intrest on Investment
is shown on which side of account
​

Answer 1

Explanation:

Interest on Capital has two effects on the final accounts which is an expense of the business, which is to be recorded on the debit side of the Profit and Loss Account. This is an income of the owner, that is to be added to the Capital Account of the Balance Sheet.

Answer 2

Answer:

Explanation:

Case 01

Given only in Trial balance

1. Shown on the credit side of Profit and Loss account

Case 02

Given as an adjustment as accrued

1. Shown on the credit side of profit and loss account
2. and Asset side of balance sheet added with Investment