Charge Interest of Rs 500 on drawings.
in profit and loss account where should it be put?
in debit or credit
Debit interest expense..
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(168037 Points)
Replied 13 August 2023
Debit interest expense..
prasad Nilugal
( GST Practitioner & Accounts )
(14546 Points)
Replied 13 August 2023
Interest on drawings is income to the business and expense (loss) to proprietor will be debited to Capital account..
RAJA P M
("Do the Right Thing...!!!")
(127962 Points)
Replied 13 August 2023
prasad Nilugal
( GST Practitioner & Accounts )
(14546 Points)
Replied 13 August 2023
Same thing in case of Partnership Firm , partners withdraw Goods or money ( Drawings ) from the Business , so as per partnership deed Business charge Interest on Drawing to partners , therefore Interest on Drawings is Income to the partnership Firm (Business ) and expense (loss ) to the partners .
Eswar Reddy S
(CFO- at NHTF)
(58263 Points)
Replied 13 August 2023
Yasaswi Gomes new
(Finance )
(4492 Points)
Replied 16 August 2023
Ok so partnership accounting has the henious form and legality. Why didn't they come into business combinations? Very funny!
Eswar Reddy S
(CFO- at NHTF)
(58263 Points)
Replied 16 August 2023
prasad Nilugal
( GST Practitioner & Accounts )
(14546 Points)
Replied 17 August 2023
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