In a partnership, the
journal entries to account for interest charged on drawings accounts balances of
partners are:

Question

Answer

Debit Profit and Loss Account Credit Interest Payable Account

Answer

Debit Current Accounts
of Partners

Credit Profit and Loss
Appropriation Account

Answer

Debit Capital Accounts of Partners Credit Profit and Loss Appropriation Account

Answer

Debit Drawing Accounts of Partners Credit Capital Accounts of Partners

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