HomeTestsSearchRankProfile
easyMCQCUET 2025 31 May Shift 12026Accountancy
1 mark

In case partner's capital is fixed, then where interest on drawings charged will be shown?

  1. A
    Debit side of partner's capital account
  2. B
    Credit side of partner's capital account
  3. C
    Debit side of partner's current account
  4. D
    Credit side of partner's current account

Solution & Step-by-step Explanation

Under the fixed capital system, the Capital Account records only permanent structural capital introductions or withdrawals. All routine operational adjustments like interest on capital, salary, drawings, and interest on drawings are recorded in the Partner's Current Account.Since interest on drawings is an expense/deduction for a partner, it is shown on the Debit side of the Partner's Current Account.

Practice this question

Try it yourself before checking the explanation above.

In case partner's capital is fixed, then where interest on drawings charged will be shown?
A
Debit side of partner's capital account
B
Credit side of partner's capital account
C
Debit side of partner's current account
D
Credit side of partner's current account

Share This Question

Related Questions

Ready for a Full Test?

Practice with timed mock tests and track your performance across Accountancy.

Discussion