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.

The interest on partners' loan is

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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