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Where will you record interest on drawings?
  • a)
    Debit side of Profit & Loss Appropriation Account
  • b)
    Credit side of Profit & Loss Appropriation Account
  • c)
    Credit side of Profit & Loss Account 
  • d)
    Debit side of Capital / Current Account only
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Where will you record interest on drawings?a)Debit side of Profit &...
Interest on drawings will be shown on the credit side of the profit and loss appropriation account. Interest on drawings is the interest charged by the firm on the drawings made by the partners. It is a source of income for the firm and hence, it is to be credited to profit and loss appropriation account.
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Community Answer
Where will you record interest on drawings?a)Debit side of Profit &...
And Loss Account
b)Credit side of Profit and Loss Account
c)Debit side of Balance Sheet
d)Credit side of Balance Sheet

The correct answer is b) Credit side of Profit and Loss Account.
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Where will you record interest on drawings?a)Debit side of Profit & Loss Appropriation Accountb)Credit side of Profit & Loss Appropriation Accountc)Credit side of Profit & Loss Accountd)Debit side of Capital / Current Account onlyCorrect answer is option 'B'. Can you explain this answer?
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Where will you record interest on drawings?a)Debit side of Profit & Loss Appropriation Accountb)Credit side of Profit & Loss Appropriation Accountc)Credit side of Profit & Loss Accountd)Debit side of Capital / Current Account onlyCorrect answer is option 'B'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Where will you record interest on drawings?a)Debit side of Profit & Loss Appropriation Accountb)Credit side of Profit & Loss Appropriation Accountc)Credit side of Profit & Loss Accountd)Debit side of Capital / Current Account onlyCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Where will you record interest on drawings?a)Debit side of Profit & Loss Appropriation Accountb)Credit side of Profit & Loss Appropriation Accountc)Credit side of Profit & Loss Accountd)Debit side of Capital / Current Account onlyCorrect answer is option 'B'. Can you explain this answer?.
Solutions for Where will you record interest on drawings?a)Debit side of Profit & Loss Appropriation Accountb)Credit side of Profit & Loss Appropriation Accountc)Credit side of Profit & Loss Accountd)Debit side of Capital / Current Account onlyCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Class 12. Download more important topics, notes, lectures and mock test series for Class 12 Exam by signing up for free.
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