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Chhavi and Neha were partners in a firm sharing profits and losses equally. Chhavi withdrew a fixed amount of ₹ 6,000 at the beginning of each quarter. Interest on drawings is charged @ 6% p.a. - Accounts

Question

Chhavi and Neha were partners in a firm sharing profits and losses equally. Chhavi withdrew a fixed amount of ₹ 6,000 at the beginning of each quarter. Interest on drawings is charged @ 6% p.a.

Pass the necessary journal entry for charging interest on drawings at the end of the year.

Journal Entry

Solution

Journal Entry
Date	Particulars	L.F.	Debit (₹)	Credit (₹)
	Chhavi’s Capital A/c ...Dr.		900	-
	To Interest on Drawings A/c		-	900
	(Being interest on drawings charged.)