can ne1 explain 2 me in simple terms as to what is payment of interest out of capital??...
Priyanka Arora (abc) (55 Points)
03 March 2010can ne1 explain 2 me in simple terms as to what is payment of interest out of capital??...
sanjoy saha
(student)
(126 Points)
Replied 03 March 2010
If u have taken any loan for ur business and unfortunately u have suffered loss (or insufficient profit to cover up the interest on loan) then u are paying interest on loan out of ur capital.