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WAEC Financial Accounting 2015 Question 48

Question 48

Partnership Accounts

Which of the following is found on the credit side of a partnership's appropriation of profit account?

  1. A.Interest on capital.
  2. B.Interest on drawings.
  3. C.Share of profit.
  4. D.Drawings.
Show the answer and explanation

Answer: B (Interest on drawings.)

Explanation

Interest charged on partners' drawings adds to the profit available, so it is credited in the appropriation account.