Interest received on capital investment

Dear expets

interest on received by parter on capital investment, it is direct income to his personal accounts - correct or not
Replies (3)
Quick Summary
This discussion clarifies whether interest received by a partner on their capital investment, paid directly to their personal account, is considered correct. Experts explain that direct and indirect expenses are relevant only to production, and while borrowing costs can be capitalised, the capital itself cannot be. The consensus is that this type of interest income is indeed direct income to the partner's personal account.

Direct and indirect expenses classification relates to only production. Borrowing costs are capitalised but not capital itself!

 

Interest received on capital investment
@ Gaddala Ramesh,

You are exactly correct...

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