what is effect of interest charged on capital on accounting equation

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Chettripradeep775idn Chettripradeep775idn

05-01-2021
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what is effect of interest charged on capital on accounting equation

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Biddyboom2idn Biddyboom2idn · Answer 1 · 2021-01-05T05:14:18-05:00

Biddyboom2idn Biddyboom2idn

05-01-2021

Treatment of interest on capital in accounting equation will be as follow: In asset side, the amount of interest on capital paid will be deducted from bank or cash account. Since, the payment is done and it reduces the bank or cash balance.

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