Provide interest on capital @ 10% p.a. on Rs 80,000
Provide interest on capital @ 10% p.a. on Rs 80,000
For provision entry
Dr interest on capital a.c 8000
Cr partners' current a.c/ sole proprietor current a.c 8000
since it may be practice of keeping fixed capital account for the business,
Interest on Capital A/c..........XXXX
To Owners A/c (or) Cash A/c..........XXXX
CAclubindia
