Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:

Interest on drawings of a partner is which of the following?

Options:

Profit to Partners

Profit to business

Loss to Business

None of the Above

Correct Answer:

Profit to business

Explanation:

Interest on drawings of a partner is Profit to business and loss to partner as they have to give that amount of interest to the partnership firm.