Question

Interest on capital is shown in the
(A)Departmental Trading A/C
(B)Departmental P&L A/C
(C) General P& L A/C
(D)None of these​

Answer 1

Answer:

b

Explanation:

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Answer 2

Answer:

The correct answer is option A

Explanation:

• Accounts for the various departments or sections of a business are called departmental accounts, and they are prepared with the goal of evaluating each department's performance separately. A company might have several departments, each of which deals in a distinct class of goods. One example of extensive trading by a retail trader is department stores.
• An entrepreneur divides his store into numerous sections, each of which is referred to as a Department, in order to conduct business more effectively. It is preferable to prepare separate Trading and Profit and Loss Accounts for each department in order to determine the profit or loss made by each.
• The fixed return on investment that the business owner is entitled to receive is known as interest on capital. It is the share capital interest that is paid to the investor for the sum they agree to invest in their business. The excess over the total amount they employed is eligible for interest payment to the partner. Usually, it happens in partnership businesses. However, instead of increasing the capital of the partner, the company does not pay interest on capital in cash. Interest on capital is deducted from the company's profit and loss statement, recorded as a debit-side expense, and added to the capital account of the partners.

Reference Link

• https://brainly.in/question/28038972
• https://brainly.in/question/22350899