Why interest on capital is taken as charge against profit in this question??
Dear Student
Interest on capital is taken as a charge against profit only if it is specified in the question, else interest on capital is always taken as the appropriation of profit.
Therefore in your question, it must have been specified that interest on capital shall be treated as a charge against profit.
Hope this helps
Regards
Interest on capital is taken as a charge against profit only if it is specified in the question, else interest on capital is always taken as the appropriation of profit.
Therefore in your question, it must have been specified that interest on capital shall be treated as a charge against profit.
Hope this helps
Regards