the opening balance of partners capital a/c is used to calculated
(a) Interest on capital
(b)Interest on drawings
(c) Drawings
(d) share in loss
Answers
Answered by
3
Answer:
option a. Interest on capital
Answered by
1
Answer:
option a
Explanation:
Interest on partner's capital is an amount at an agreed rate of interest which is credited to a partner based on the amount of capital contributed by him/her.
Interest on partner's capital is an expense to the firm and hence debited to profit and loss appropriation A/c. On the other hand it is an income for partners and hence credited to partner's capital A/c.
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