Give the adjusting and Closing entry for recording interest on drawins charged from the partners when the firm follows the fixed capital method.
Give the adjusting and Closing entry for recording interest on drawins charged from the partners when the firm follows the fixed capital method.
Anurag Pathak Changed status to publish April 9, 2023
Answer:-
Adjusting Entry:
Partner’s Current A/cs …Dr.
To Interest on Drawings A/c
Closing Entry:
Interest on Drawings A/c …Dr.
To Profit and Loss Appropriation A/c
Anurag Pathak Changed status to publish April 9, 2023
