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WAEC Financial Accounting 1996 Question 24

Question 24

Company Accounts

Which of the following is not an Appropriation Account item for a company?

  1. A.Interest on drawings
  2. B.Proposed dividends
  3. C.Interim dividends
  4. D.Provision for taxation
  5. E.General reserve.
Show the answer and explanation

Answer: A (Interest on drawings)

Explanation

Interest on drawings belongs to partnership appropriation accounts; company shareholders do not have drawings.