WAEC Accounting 2016 Objective — Question 32

Question 32 of 50 from the West African Examinations Council (WAEC) Accounting 2016 Objective paper, with the correct answer and a full explanation.

32. In preparing partnership accounts, interest on drawings is debited to A. current accounts and credited to capital account B. appropriation account C. drawings account D. profit and loss account

A. current accounts and credited to capital account
B. appropriation accountCorrect
C. drawings account
D. profit and loss account

Explanation

Interest on drawing is an income to partnership business but expense to the partners. It is treated as Dr Partners Current A/c, Cr P&L Appropriation A/c.

Sign up free to unlock

Score tracking
Practice history
Saved questions
Progress dashboard
Personalized sessions
Weak-topic breakdown

…and/or go further with premium services and No Ads.

Create free account

More questions from Accounting 2016 Objective More Accounting past papers