passwella.
Menu

WAEC Financial Accounting 1998 Question 46

Question 46

Partnership Accounts

Interest on Partner's drawing is credited to

  1. A.Capital Account
  2. B.Drawings Account
  3. C.Current Account
  4. D.Profit and Loss Account
  5. E.Appropriation Account.
Show the answer and explanation

Answer: E (Appropriation Account.)

Explanation

Interest charged on drawings is income to the firm: debit the partner's current account, credit the appropriation account.