why the interest on on partners loans is not credited in his capital account

Dear Student,

Since interest on loan is an expense for the firm which has to be paid irrespective of the profit made or loss incurred. That is why it is not credited to the capital account and credited to the loan account and later debited to the 'P/L A/c' or 'P/L Appropriation A/c'(if it is take an appropriation of profits).

Regards