Question

provide interest on capital of 100000 at rate 10% per annum journal entry ​

Answer 1

here ur answer hope it's help to u

Answer 2

Answer:

Explanation:

                        In the books of the journal entry

                       

date   particulars                       L/F          amount       amount

          interest on capital a/c Dr.                10000

                                 To, capital A/C                              10000  

         [ 100000 x 10% ]

         [ being interest on capital @ 10% ]

As interest on capital increased in business. So, interest is to be paid to the proprietor and is nominal a/c so debited