Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:

When the partner's capital a/c is debited in the accounts of a partnership firm?

Options:

Interest on Drawings is charged

Investment is done

No Drawings are made

Capital is introduced

Correct Answer:

Interest on Drawings is charged

Explanation:

When the Interest on drawings is charged to partners, Interest on Drawing Account is credited, and the Partner's Capital Account is debited.