Question:
Manoj, Dilip and Rajinder were partners in a firm sharing profits and losses in the ratio of 7 : 3 : 5. Their fixed capitals were \(₹10,00,000\), \(₹8,00,000\) and \(₹6,00,000\), respectively. The partnership deed provided for interest on partners’ drawings @ 12% p.a. Which of the following accounts will be debited for charging interest on partners’ drawings ?
Manoj, Dilip and Rajinder were partners in a firm sharing profits and losses in the ratio of 7 : 3 : 5. Their fixed capitals were \(₹10,00,000\), \(₹8,00,000\) and \(₹6,00,000\), respectively. The partnership deed provided for interest on partners’ drawings @ 12% p.a. Which of the following accounts will be debited for charging interest on partners’ drawings ?
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Interest on drawings → income for firm → goes to P and L Appropriation A/c.
Updated On: Jul 8, 2025
- Partners’ Capital Account
- Profit and Loss Appropriation Account
- Interest on Drawings Account
- Profit and Loss Account
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The Correct Option is B
Solution and Explanation
Interest on drawings is income for the firm and is credited to the Profit and Loss Appropriation Account. Hence, that account is debited for charging it.
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