JAMB Accounting 2010 Objective — Question 42
Question 42 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2010 Objective paper, with the correct answer and a full explanation.
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42. The interest on partners' loan is A. debited in current account B. credited in profit and loss account C. debited in profit and loss account D. credited in current account
- A. debited in current account
- B. credited in profit and loss account
- C. debited in profit and loss accountCorrect
- D. credited in current account
Explanation
The interest on partner's loan is like any other expense used in running the business; therefore, it is debited to the profit and loss account.
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