why is interest on capital an expense....??

Answer Posted / 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

Is This Answer Correct ?    16 Yes 6 No



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