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  • Partnership and Not-for-Profit Accounting
  • Interest on capital A/c is a
Multiple choice

Interest on capital A/c is a

  1. real A/c

  2. personal A/c

  3. nominal A/c

  4. None of these

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Nominal A/c is concerned with income and expenses, and interest on capital is an expense because it is to be paid to the partners by the firm.

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