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Question
| Shashi and Trisha were partners with fixed capitals of ₹ 5,00,000 and ₹ 3,00,000 on 1st April 2024. They are allowed interest on capital @ 6% p.a. and are charged interest on drawings @ 9% p.a. During the year, Shashi withdrew ₹ 6,000 per month at the beginning of every month, whereas Trisha withdrew ₹ 18,000 per quarter at the beginning of every quarter. The profits for the year before the above-mentioned adjustments were ₹ 1,20,440. |
Interest on capital will be recorded ______.
Options
On the credit side of capital accounts
On the credit side of profit and loss appropriation account
On the credit side of current accounts
On the debit side of current accounts
MCQ
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Solution
Interest on capital will be recorded on the credit side of current accounts.
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