Question

In case of interest on capital charged on deceased partner's capital account, what will be the journal entry?

• A. Bank A/c Dr. To Deceased partner's capital A/c
• B. Interest on Capital A/c Dr. To Bank A/c
• C. Interest on Capital A/c Dr. To Deceased partner's capital A/c
• D. Deceased partner's capital A/c Dr. To Interest on Capital A/c

Answer 1

The correct option is C

Interest on Capital A/c Dr.

To Deceased partner's capital A/c

In case of interest on capital, the journal entry is :

Interest on Capital A/c Dr.

To Deceased partner's capital A/c