Question : Interest on capital to partners is credited to:
Option 1: Profit and Loss A/c
Option 2: Profit and Loss Appropriation A/c
Option 3: Partner's capital/current A/c
Option 4: Cash A/c
Correct Answer: Partner's capital/current A/c
Solution : Interest on capital is credited to Partner's Capital/Current Account because it is an income for the partners. Hence, the correct option is 3.
Question : Interest on partner's drawings is credited to:
Question : Rent paid to a partner is debited to:
Question : The interest on Partner's Capital Accounts is to be credited to
Question : Partner's salary is debited to:
Question : Which of the following items is not recorded in Profit and Loss Appropriation A/c?
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