Journal Entry for Interest on Capital Last Updated : 05 Apr, 2023 Improve Improve Like Article Like Save Share Report The proprietor can charge interest on the amount invested by him/her in the business as capital, which is shown as Interest on Capital. Journal Entry: Example 1: Interest is charged ₹800 on capital. Solution: Example 2: Started business with Cash ₹1,00,000. Charged Interest on Capital @6% per annum. Solution: Like Article Suggest improvement Previous Journal Entry for Life Insurance Premium & Employee's Life Insurance Premium Next Journal Entry for Interest on Drawings Share your thoughts in the comments Add Your Comment Please Login to comment...