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Interest on drawings is recorded on which side of a partner's capital account on dissolution?

Answer and explanation

Correct answer: Debit side

Interest on drawings is payable by the partner to the firm so it is debited to capital account. Deduct it from capital in exams.

Related tags

DissolutionInterest On DrawingsCapital AccountPartner AccountsDissolution Of A Partnership FirmAccountancyClass 12 Mcq

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