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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 Capitals @ 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 drawings will be recorded ______.
Options
On the debit side of the profit and loss appropriation account
On the credit side of current accounts
On the debit side of capital accounts
On the credit side of the profit and loss appropriation account
MCQ
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Solution
Interest on drawings will be recorded on the credit side of the profit and loss appropriation account.
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