when only interest on capital is written in an entry what does that mean in terms of the business' assets liabilities and capital

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Solution

Dear Student,

Interest on capital is the return for the amount invested in the business by the proprietor. It is added to (because its increases owner's capital) and deducted from (because it is a business expense) the capital

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when only interest on capital is written in an entry what does that mean in terms of the business' assets liabilities and capital

Dear Student, Interest on capital is the return for the amount invested in the business by the proprietor. It is added to (because its increases owner's capital) and deducted from (because it is a business expense) the capital

Dear Student,

Interest on capital is the return for the amount invested in the business by the proprietor. It is added to (because its increases owner's capital) and deducted from (because it is a business expense) the capital