Since the partners have fixed capitals, interest on capital is credited to Partner's Current Account (not Capital Account). In P&L Appropriation A/c it appears on the debit side; in Current A/c it appears on the credit side. Hence Cr, Current.
Interest on capital will be shown on the Dr. side of Profit and Loss Appropriation A/c and ________ side of Partner's ________ A/c.
Held on 20 Aug 2022 · Verified 13 Jul 2026.
Cr, Capital
Dr, Current
Cr, Current
Dr, Capital
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