Under fixed capital method, where will interest on drawings be recorded?

Correct answer: Debit in current account

Direct answer: Option A, debit in the partner’s current account. Under the fixed capital method, the capital account is kept unchanged except for permanent changes in capital. Therefore regular items such as salary, interest on capital, drawings, and interest on drawings are recorded in the current account. Interest on drawings is charged to the partner, so it is a debit for that partner. Step by step: the partner withdraws money or goods; the firm charges interest for this use; the partner owes this amount to the firm; the amount is therefore debited to the partner’s current account. Option A is correct because it follows the fixed-capital rule. Option B is wrong because interest on drawings is not always credited to capital; under this method it is generally recorded through the current account. Option C is wrong because the stock account records goods, not a partner’s personal charge. Option D is wrong because the sales account records sales revenue, not drawings interest. Memory cue: fixed capital stays fixed; routine adjustments go to the current account.