when only interest on capital is written in an entry what does that mean in terms of the business' assets - Accountancy - Recording of Transactions - I

Question

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

Neha Arora · Accepted Answer

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

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