what is interest on capital

Answer Posted / satyaki_raju@yahoo.com

Rakesh Bhai
Interest on Capital a/c dr
To capital
(Being interest charged on capital)
Interest on capital will be calculated at the year end and
will be added to capital account.according to you capital
account was not raised
So be careful while giving answer

Is This Answer Correct ?    54 Yes 14 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

how to mention last year profit of ay private limited company in current year balance sheet ?

819


WHAT IS MEANT BY FACTORING, TRESURY BILLS,BULLS, BEARS

1781


What is Hot Issue Income for Hedge Funds?

8241


my boss (Managing Partner of a firm) promoted along with his wife a private limited company. he and she spent some Rs. 75,000/- (approx) for the promotion of the company. i know that they usually fall under the head of preliminary expenses. but after receiving the certification of incorporation of the company how shall i repay them to the promoters i.e. what is the accounting entry in the books (initial books of accounts) for the expenditure incurred. they have kept in hand 5,00,000/- each to meet the expenses and they were allotted shares of equal to the amount. can i allot shares for a consideration of cash from and excluding the preliminary expenses. can i take cash towards the share application money (being the cash more than Rs. 20,000/-) as the company has not opened a bank account yet. please give me the detailed answer with journal entries that can be entered in tally. thank you.

1516


I want to know how to get Appeared to the examination of State bank of India. And how can i find the question Book Series.

1579






If DEBT/EQUITY ratio 2:1, is to good or bad for a company? how...??? can u explain it...???

1709


Short Answer on _____________Whole Sale Trade

1687


What are the objectives of accounting

1487


Explain about Fixed capital

1587


what are the aspects an auditor has to see when he/she is doing the Purchase,Sales and Journal Vouching

1451


why gross profit transfering to profit & loss account

3608


Expand---------PED

1611


what is meant by qurum

2016


Which Exchange determine Foreign Exchange/Currency Rate?

1523


how to solved the shares qusionas ?

1612