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to encourage the partner invest more capital in the business
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∙ 11y ago
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The reward for capital is?
interest
What is the price paid to borrow debt capital?
Interest
What is a clue as to whether capital has increased or decreased?
When capital increases, interest rates fall.
Who pays the interest you get from your bank?
The bank pays it to you. The interest reflects the return on the capital you have loaned to the bank.
What is the difference between return on capital and return on investment?
return on capital = earnings before interest and tax / capital employed * 100
The reward for capital is?
interest
What will be the journal entry when interest allowed by the bank?
interest allowed by bank
How to treat interest on capital while preparing balance sheet?
Interest on capital is added on the capital account in balance sheet as interest incurred from capital is based on business entity assumption.
What is the journal entry to interest on capital?
[Debit] Interest on capital account xxxx [credit] Capital account xxxx
What is the journal entry for capital on interest?
interest on captial a/c dr To Partner's capital a/c
What is the price paid to borrow debt capital?
Interest
When the rate of interest falls the demand for capital?
When the rate of interest falls the demand for capital increases because it is cheaper to borrow money.
What has the author Colin Rogers written?
Colin Rogers has written: 'Money, interest, and capital' -- subject- s -: Capital, Interest, Money
Whether interest on service tax allowed for income tax or not?
It is allowed
Which term refers to the cost of a firm incurs for capital goods?
Interest
What is the journal entry of interest on capital of Rs 50000 10 percent?
[Debit] Interest on Capital 5000 [Credit]Cash/Bank 5000
In single entry system can we charge interest on capital on both closing capital and fresh capital?
No interest on capital charge upon opening capital and also on fresh capital upto the extent we utilize e.g if use fresh capital for six month then according to six month ratio.
