Interest on capital is shown in ........

General Accounting Principles Accounting cycles

Interest on capital is shown in

Debit side of P &L

Credit side of P &L

Deducting from capital in balance sheet

Both a & C

interest on capital is expense for the firm, so will be shown on debit side of P& L A/c

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Verification needed. The explanation is not clear so as to which side it belongs.

Ankur sharma

Interest on capital is expense for firm, so will come on debit side of P&L A/c