JAMB Accounting 2013 Objective — Question 35
Question 35 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2013 Objective paper, with the correct answer and a full explanation.
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In a partnership account, interest on drawings is
- A. debited to appropriation account
- B. credited to appropriation accountCorrect
- C. treated as an expense in profit and loss account
- D. recorded in the balance sheet as current assets
Explanation
Interest on partners' drawings is income to the organisation, and is thus credited to the appropriation account.
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