Question

Q.8. The two effects of "interest on capital allowed" on Accounting Equation will be: O (a) Increase in liability, Decrease in Capital O (b) Increase in Capital, Decrease in Liability (c) Decrease in Cash, Decrease in Capital (d) Increase in Capital, Decrease in Capital​

Answer 1

Answer:

hey mate

how are you

i think you are fine

here is your answer

it will be option no d

increase in capital , decrease in capital

stay safe

thank you

Explanation:

Answer 2

Answer:

OPTION B INCREASE IN CAPITAL& DECREASE IN LIABILITY

Explanation:

IN ACCOUNTIND EQUATION INTREST ON CAPITAL WILL BE ADDED AND SUBTRACTED FROM CAPITAL BECAUSE INTREST ON CAPITAL IS PAID TO PARTNERS IT IS AN EXPENCE TO THE BUSINESS