Correct Journal entry for transferring i

CUET Preparation Today

Start Free Mocks

Home Questions HHJ9UDHUPX

Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Partnership

Question:

Correct Journal entry for transferring interest on capital to Profit and Loss Appropriation Account is-

Options:

Profit and Loss Appropriation A/c Dr. To Interest on Capital A/c

Interest on Capital A/c Dr. To Partner's Capital/Current A/cs

Interest on Capital A/c Dr. To Profit and Loss Appropriation A/c

Partners Capital/Current A/c's Dr. To Interest on Capital A/c

Correct Answer:

Profit and Loss Appropriation A/c Dr. To Interest on Capital A/c

Explanation:

The correct answer is Option (1) → Profit and Loss Appropriation A/c Dr. To Interest on Capital A/c