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Why interest on capital always calculated …

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Why interest on capital always calculated on opening balance

    • Posted by Kavita Sharma 8 years, 3 months ago

    CBSE > Class 12 > Accountancy
    • 2 answers

    Mukul Khatwani 8 years, 3 months ago

    Because all apprpriations are done at the end of the year that means throughout the year bal. In capital a/c was at opening balance only, so interest is allowed on opening balance.

    3Thank You

    Nitisha Sharma 8 years, 3 months ago

    Interest is to be given on amount used for a particular period ..

    1Thank You

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