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Does interest on capital have a impact on cash balance?
Replies (3)
no int of capital don't have impact on capital. Yet it increase capital of partner or properitor. in case of partnership it is adjusted by reducing profit. does reduced share of profit on one side and increases capital by allowing interest on Capital

So it does not have a impact on cash balance of the firm, Hence should not have an impact on the drawing powers of the partners ?

can any one tell me,what is the accounting treatment for notional rent??


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