Question

The opening balance of partners capital account is credited with__.

Answer 1

Answer:intrest on capital

Explanation:

Answer 2

Answer:

The opening balance of partners capital account is credited with Interest on Capital.

Explanation:

Interest on Capital is credited to the partners capital account's opening balance. The firm's profit and loss appropriation account is debited for interest on capital as an expense. Since interest is paid to the partners, the amount of interest is credited to the partner's capital account.

• Since interest on partner capital is a company expense, it is debited from the profit and loss appropriation account. On the other hand, as it is revenue for the partners, it is credited to the capital account of the partners. interest in the Capital of the Partner
• The interest rate shouldn't be higher than $12$%. Interest payments are not permitted if they are in excess of $12$ percent of the capital. If the tax was paid on a presumptive basis in accordance with section $44$AD or section $44$ADA, it is not permitted.