Practicing Success
Practicing Success
CUET Preparation Today
| The interest on the capital accounts of partners is credited to which account? |
Partner's Capital account Profit and Loss account Interest account None of the above |
| Partner's Capital account |
| Interest on capital is an expense to the firm and is debited to the profit and loss appropriation account. Interest is payable to the partners and hence, the partner's capital account is credited with the amount of interest. In case of loss, no interest will be allowed on capital. |
