What is interest on capital?

Very Short Answer

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 - VERY SHORT ANSWER QUESTIONS (1 Mark) [Page 1.132]

Chapter 1 Accounting for Partnership Firms - Fundamentals
VERY SHORT ANSWER QUESTIONS (1 Mark) | Q 40. i. | Page 1.132