WAEC Accounting 2017 Objective — Question 35

Question 35 of 50 from the West African Examinations Council (WAEC) Accounting 2017 Objective paper, with the correct answer and a full explanation.

35. Interest on partners drawings are debited in the

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

Explanation

Interest in partners drawing is income to the partnership business. It is treated thus: Dr: Cartons current a/c; Cr: P & L appropriation a/c.

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