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Income Side of Statement of Profit and Loss

Interest on c...

Question

Interest on capital is a/an ____________.

A

income for the business

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B

expense for the business

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C

gain for the business

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D

loss of business

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Solution

The correct option is A expense for the business
Interest on capital is given to the owner for investing capital in the business. Therefore, IOC is a expense for the business.

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