Interest on a partner's drawings is debited to the
The correct answer is A. Partners current account and credited to the profit and loss appropriation account
Interest on a partner’s drawings is typically charged to the partner’s current account and credited to the profit and loss appropriation account. This is because the interest on drawings is an expense for the partner but an income for the firm.
So, the correct answer is A. Partners current account and credited to the profit and loss appropriation account.
Previous question Next questionWhat is Exam without Practice? With our customizable CBT practice tests, you’ll be well-prepared and ready to excel in your examsStart Practicing Now