Question

intrest on Capital is credited to ____ Account​

Answer 1

Answer:

Interest on Capital is credited to the Profit and loss Account​

Explanation:

The interest on capital of a partner is credited to the Profit and loss A/c. A Capital interest is an expense to the company and is debited to the account of profit and loss appropriation. Interest is payable to partners and therefore the amount of interest is credited to the partner's capital account.