Interest capitalised

Interest capitalised will be recorded in the .....

• CRJ

• CPJ

• GJ

• PCJ

When interest on loan is calculated it will be added to the loan amount.

• True
• False

Interest on loan is considered a/an.....

• Asset

• Liability

• Income

• Expense

When interest on fixed deposit is capitalised, owner's equity will increase and Fixed deposit will increase.

• True
• False

When interest on loan is capitalised, the interest on loan will be debited and bank will be credited in the General Journal.

• True
• False