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Does iod

24 November 2021

does interest on drawing is charged on withdrawing from partner current account which has credit opening balance

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Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (5197 Points)
Replied 26 November 2021

Amount withdrawn by the owner for his personal use is called as drawings. When interest on capital is allowed, then interest on drawings is charged from the owner. Interest on drawings is an income for the business and will reduce the capital of the owner.