Interest on drawings of a partner is whi

CUET Preparation Today

Start Free Mocks

Home Questions TUUXYWMJGJ

Target Exam

CUET

Subject

-- Accountancy Part A

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:

The correct answer is option 2- Profit to business.

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