In case partner's capital is fixed, then where interest on drawings c…

The correct answer is Option (3) → Debit side of partner’s current account

Under the fixed capital method, the capital account records only fresh capital and permanent withdrawals; every other item goes to the partner’s current account. Interest on drawings is a charge on the partner (it reduces what the firm owes him), so it is shown on the debit side of the current account, beside the drawings.

Option (1) Debit side of partner’s capital account — Incorrect. That is where it goes under the fluctuating capital method, which has no current account.

Option (2) Credit side of partner’s capital account — Incorrect. The wrong account and the wrong side: the credit side records amounts due to the partner, such as fresh capital.

Option (4) Credit side of partner’s current account — Incorrect. The credit side of the current account carries salary, commission, interest on capital and share of profit, which the partner earns; interest on drawings is charged to him.