What is effect of interest charged on capital on accounting equation

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asked Jan 26, 2022 165k views

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Sosily · Answer 1 · 2022-02-01T10:42:43+0000

Treatment of interest on capital in accounting equation will be as follow: In asset side, the amount of interest on capital paid will be deducted from bank or cash account. Since, the payment is done and it reduces the bank or cash balance.

What is effect of interest charged on capital on accounting equation

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What is effect of interest charged on capital on accounting equation