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On which side of the Profit and Loss Appropriation Account is interest on drawings shown?

Answer and explanation

Correct answer: Credit side

Interest on drawings is received by the firm from partners, so it is shown on the credit side. It increases distributable profit.

Related tags

Interest On DrawingsCredit SideAppropriation AccountPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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