Interest in drawings is regarded as

A. Expenditure for the business

B. Loss for the business

C. Gain for the business

D. Liability for the business

Details of Mcqs:

Interest on drawings will be debited to capital account. Interest on drawing is an income for the firm and is payable by the partners to the firm hence, is deducted/debited. Interest is charge on the money/goods taken by the partners for their personal use during the year.


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