Question : Interest on partner's drawings is credited to:
Option 1: Profit and Loss A/c
Option 2: Profit and Loss Appropriation A/c
Option 3: Partner's Capital A/c
Option 4: Partner's Current Alc
Answer (1)
14th Jan, 2024
Correct Answer: Profit and Loss Appropriation A/c
Solution : Interest on partner's drawings is credited to Profit and Loss Appropriation A/c because it is an appropriation to the partners. Hence, the correct option is 2.
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