State two differences between interest on capital allowed to partners and interest on drawings charged from partners.

Anurag Pathak
April 9, 2023
[CBSE] Fundamentals of Partnership Firm, Accountancy Class 12th

1.06K viewsApril 9, 2023[CBSE] Fundamentals of Partnership Firm Accountancy Class 12th

Anurag Pathak28.37K April 9, 2023 0 Comments

State two differences between interest on capital allowed to partners and interest on drawings charged from partners.

Anurag Pathak Changed status to publish April 9, 2023

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Anurag Pathak28.37K Posted April 9, 2023 0 Comments

Answer:-

i) Interest on capital is allowed (paid) by the firm to the partners whereas interest on drawings is charged by the firm.

ii) Interest on drawings is credited to Profit and Loss Appropriation Account and interest on capital is debited to Profit and Loss Appropriation Account.

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State two differences between interest on capital allowed to partners and interest on drawings charged from partners.

1 Answer

Anurag Pathak

1 Answer

Anurag Pathak

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