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WAEC Accounting 2020 Objective — Question 3

Question 3 of 50 from the West African Examinations Council (WAEC) Accounting 2020 Objective paper, with the correct answer and a full explanation.

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The double entry for interest on drawings by a partner is

  • A. debit Partner's Current Account; credit Appropriation AccountCorrect
  • B. debit Profit and Loss Account; credit Interest Account
  • C. debit Appropriation Account, credit Partner's Current Account
  • D. debit Interest Account; credit Profit and Loss Account

Explanation

The double entry for interest on drawings by a partner is: debit Partner's Current/Capital account; credit Appropriation account.

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