Accountancy, asked by ishumato, 9 months ago

why intrest on capital is allowded on opening balance of partners capital ?
want a verified answer plz

Answers

Answered by jyotirawat83
0

Answer:

When the interest on capital is allowed to partners, interest on capital Account is debited and partner's capital Account is credited. It is called as an adjusting entry. Adjusting entries are usually done at the end of the year for incomes and expenses

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