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Class 12 Accountancy Partnership Accounts - Basic Concepts AdjustmentsHard

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Which item correctly appears on the credit side of the Profit and Loss Appropriation Account?

Answer and explanation

Correct answer: Interest on drawings

Interest on drawings is income of the firm and appears on the credit side. The other given items are usually debit appropriations.

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Partnership Appropriation Account Credit Side Adjustments Partnership Accounts Basic Concepts Accountancy Class 12 Mcq

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