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Interest on Capital vs Interest on Drawings | Partnership Accounts Explained 💰

In this video, we break down two important concepts in partnership accounting: Interest on Capital and Interest on Drawings. Understand how they affect partner’s capital accounts, how to calculate them, and their impact on profit distribution.

✅ What you’ll learn:

Meaning of Interest on Capital

Meaning of Interest on Drawings

Journal entries and treatment in final accounts

Practical examples for better understanding


🎓 Perfect for Class 12 students, B.Com, CA Foundation & accounting beginners!

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