Question

provide 8% interest on capital on rupees 100000 for 6 months journal entry​

Answer 1

Explanation:

Accounting and Journal Entry for Interest on Capital. Interest on capital is an expense for the business and is added to the capital of the proprietor thereby increasing his total capital in the business. It is not paid in cash or by the bank.

Answer 2

Answer:

interest on capital a/c Dr 4,000

to Capital a/c 4,000

Explanation:

1,00,000 × 8% × 6/12 = 4,000