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WAEC Financial Accounting 2007 Question 33

Question 33

Partnership Accounts

Which of the following is credited to a partnership appropriation accounts?

  1. A.Interest on capital
  2. B.Interest on drawings
  3. C.Partner's salaries
  4. D.Partner's drawings.
Show the answer and explanation

Answer: B (Interest on drawings)

Explanation

Interest charged on drawings is income credited to the appropriation account.