Accountancy, asked by TheGreat7049, 1 year ago

Why we put ioc on opening capital

Answers

Answered by Shipra02032000
0
Just bcoz we use capital for whole year and we introduce capital in business to earn profit at our own risk

So we should get something in return
And interest on capital is expense for the firm and income for owner
Answered by ishumahajan25
0

Answer:

IOC is charged on opening balance because opening balance is gross balance before any transactions and closing is net balance after all transactions

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