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WAEC Financial Accounting 2002 Question 35

Question 35

Partnership Accounts

Partner's interest on capital is shown in the

  1. A.Profit and Loss Account
  2. B.Partners Fixed Capital Account
  3. C.Profit and Loss Appropriation Account
  4. D.Trading Account.
Show the answer and explanation

Answer: C (Profit and Loss Appropriation Account)

Explanation

Interest on capital is a share of profit, shown in the appropriation account.