Interest on capital @6% in 200000. Create the entry
Answers!
Interest on capital a/c .....Dr 12000
To capital a/c 12000
Interest debited bcoz its expense as we are giving interest on liability
Comment
Interest Exp Dr 12000
To Capital A/c 12000
(200000*6%=12000)
Answer the question...
Interest on capital a/c .....Dr 12000
To capital a/c 12000
Interest debited bcoz its expense as we are giving interest on liability
To capital a/c 12000
Interest debited bcoz its expense as we are giving interest on liability
Comment
Interest Exp Dr 12000
To Capital A/c 12000
(200000*6%=12000)