Question

So i have to make trial balance and im kinda confused with 'interest'. So which side did it go to? Credit or debit? It didn't state the interest as received or expense/paid. someone told me to look at the bank but hey i need more explanation T^T​

Answer 1

debit

Step-by-step explanation:

The interest on capital is on credit side of a trial balance as it is a liability from the point of view of company or enterprise and it comes in the debit side