JKSSB Written 2024
Answer & Explanation
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Correct Answer:
Option C —
Debited to partner's capital a/c
In partnership accounting, Interest on Drawings is an amount charged by the firm to a partner for withdrawing cash or goods for personal use. From the firm's perspective, it is an income, but for the partner, it is an expense or a reduction in their stake in the business.
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.