Question : Interest on capital to partners is credited to:
Option 1: Profit and Loss A/c
Option 2: Profit and Loss Appropriation A/c
Option 3: Partner's capital/current A/c
Option 4: Cash A/c
Answer (1)
4th Jan, 2024
Correct Answer: Partner's capital/current A/c
Solution : Interest on capital is credited to Partner's Capital/Current Account because it is an income for the partners. Hence, the correct option is 3.
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