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What is interest on capital? - Accounts

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Question

What is interest on capital?

Very Short Answer
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Solution

Interest on capital is the amount allowed to a partner on the capital invested by him in the business.

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Chapter 1: Accounting for Partnership Firms - Fundamentals - SHORT ANSWER QUESTIONS [Page 1.131]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 1 Accounting for Partnership Firms - Fundamentals
SHORT ANSWER QUESTIONS | Q 40. i. | Page 1.131
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