Interest on capital account is ........

General Accounting Principles Partnership

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Interest on capital account is

debited to profit and loss account

credited to profit and loss apporiation acoount

debited to profit & loss appropriation account and credited to partners capital account

only credited to partners capital account

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Explanation:

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.