Why we put ioc on opening capital
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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
So we should get something in return
And interest on capital is expense for the firm and income for owner
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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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