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to encourage the partner invest more capital in the business

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13y ago

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Related Questions

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


How do you calculate interest on capital?

To calculate interest on capital, you can use the formula: Interest = Principal Amount × Interest Rate × Time. The principal amount is the initial capital invested, the interest rate is typically expressed as an annual percentage, and time is the duration for which the interest is calculated, usually in years. Simply multiply these three components together to determine the total interest earned or owed.


What has the author Colin Rogers written?

Colin Rogers has written: 'Money, interest, and capital' -- subject- s -: Capital, Interest, Money


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.


Whether interest on service tax allowed for income tax or not?

It is allowed


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.


What is the journal entry of interest on capital of Rs 50000 10 percent?

[Debit] Interest on Capital 5000 [Credit]Cash/Bank 5000