What will be the journal entry ?

Neelesh Choudhary (business) (57 Points)

13 October 2013

Provide interest on capital @ 10% p.a. on Rs 80,000

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dhruv patel (ca) (75 Points)
Replied 13 October 2013

Interest on capital A/c Dr. ₹ 8000/- To Capital A/c ₹ 8000/- Or if it is paid in cash than the CASH A/c will be credited

Manikandan Sabhapathy (.) (24 Points)
Replied 21 October 2013

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,

Sathish.Bhogadi (Executive) (91 Points)
Replied 24 October 2013

Interest on Capital A/c..........XXXX

To Owners A/c (or) Cash A/c..........XXXX

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