Interest allowed on capital is debited to Profit and Loss Appropriation Account and not to Profit and Loss Account. Why?
Interest allowed on capital is debited to Profit and Loss Appropriation Account and not to Profit and Loss Account. Why?
Anurag Pathak Changed status to publish April 9, 2023
Answer:-
Interest allowed on capital is debited to Profit and Loss Appropriation Account because it is an appropriation of profit and not a charge against profit.
Anurag Pathak Changed status to publish April 9, 2023
