Answer / supruya

Interest on capital should be allowed to the partner's of
the company for their investment in the company as in the
case of Debts, finance etc...
It is expenditure to the company and at the same time it is
income to the partner's on their capital
That the partner's are also investing only. not nothing else

Answer / ranjeet jha

when a company/firm/individual take capital from any
finance company to run a company then we also have to pay a
perticular percentage interest rate. which will be part of
company's indirect expenses

Answer / h.r. sreepada bhagi

There can not be interest on Capital.

In case of a company, interest can be paid on loan from
banks, financial institutions or others including directors.
Since it's the cost of borrowed funds, it's charged to the
P&L A/c as an expense. Return on capital is paid to the
shareholders in the form of dividend and not interest.

In the case of partnership firms again, interest can be paid
on funds borrowed from banks, partners, financial
institutions or others and the cost of the funds so borrowed
is treated as expense. The partners' get share of profit of
the firm as per the 'Partnership Deed' as return on the
capital put in by them. However if the firm has received
money and is maintaining Partners' Current A/cs, interest
can be given on this & needs to be charged off to P&L A/c.

In case of proprietorship concerns also, interest paid on
borrowed sums should be treated as expense of the period to
which it relates. The profit earned by it is the return on
capital invested by the Owner/Proprietor/Proprietress.

types of inventory

0 Answers   Genpact, IBM,

---

Cheque Cancillation Memo

0 Answers  

---

expand-----KGH

2 Answers  

---

I want to develope with my basic nowledge of accounts.what books i have to read.can you tell me the suggesion.

2 Answers  

---

What do mean by sales ledger and sales account

2 Answers   Telco,

---

what is capex

5 Answers   FactSet Systems,

---

My company's accountant use two different way to calculate Depreciation,one as per Companies Act and another rate for Income Tax calculation. Why we have to use two way to calculate it? Can we just use one way to calculate?

0 Answers  

---

fill in the Blanks We are at obligation to pay Fringe Benifit Tax even though we are in _______________

1 Answers  

---

expand S E B I

9 Answers  

---

Suppose One asset purchased in 2006year and calculated SLN method depreciation @10%pa for value 100000. Now middle of the present year the assets was transfered to B company. How can we take the accounting for previous depreciation, asset value (transfer value) to debit B company. What is the asset status in BS.

1 Answers   Accenture,

---

find the sum of all the numbers 1 to 1000

14 Answers   Sutherland,

---

EXPAND___________MCA

3 Answers  

---