Accountancy, asked by aasthagupta981, 9 months ago

What will be the effect of the interest on capital on accounting equation

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Answered by vaibhav2100j29
0

Answer:

Treatment of interest on capital in accounting equation will be as follow: In asset side, the amount of interest on capital paid will be deducted from bank or cash account. Since, the payment is done and it reduces the bank or cash balance.

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