chettripradeep775
Answered

Welcome to Westonci.ca, the Q&A platform where your questions are met with detailed answers from experienced experts. Get detailed and accurate answers to your questions from a community of experts on our comprehensive Q&A platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

what is effect of interest charged on capital on accounting system​

Sagot :

biddyboom2
The amount of interest charged on capital is an indirect expense of the business and on the other hand, it is an income of the owner. Interest on Capital has the following two effects on final accounts: It is an expense of the business, therefore; it will be recorded on the debit side of Profit and Loss Account.
kcrakshya923

Answer:

The amount of interest charged on capital is an indirect expense of the business and on the other hand, it is an income of the owner. Interest on Capital has the following two effects on final accounts: It is an expense of the business, therefore; it will be recorded on the debit side of Profit and Loss Account.

We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.