Question

Select the most appropriate answer the alternatives given below and rewrite the Sentences.

In statement of profit or loss interest on Capital in shown as _____________.
a) addition
b) subtraction
c) ignored
d) multiplied.

Answer 1

In statement of profit or loss interest on Capital in shown as subtraction.

Explanation: Under net worth method, if interest on capital is provided, then it is shown by way of deduction (or subtraction) from the closing capital.