Home | | Accountancy 12th Std | Interest on drawings

Accounts of Partnership Firms Fundamentals | Accountancy - Interest on drawings | 12th Accountancy : Chapter 3 : Accounts of Partnership Firms Fundamentals

Chapter: 12th Accountancy : Chapter 3 : Accounts of Partnership Firms Fundamentals

Interest on drawings

Interest is charged on drawings made by the partners only when there is an agreement among the partners in this regard.

Interest on drawings

Interest is charged on drawings made by the partners only when there is an agreement among the partners in this regard. The rate of interest on drawings will be the rate agreed by the partners. Following are the journal entries to be made in the books of the partnership firm.

(a) For charging interest on drawings


Note: Interest on drawings is due from the partner to the firm and hence partner’s capital/ current account is debited and interest on drawings account is credited.

(b) For closing interest on drawings account



Tags : Accounts of Partnership Firms Fundamentals | Accountancy , 12th Accountancy : Chapter 3 : Accounts of Partnership Firms Fundamentals
Study Material, Lecturing Notes, Assignment, Reference, Wiki description explanation, brief detail
12th Accountancy : Chapter 3 : Accounts of Partnership Firms Fundamentals : Interest on drawings | Accounts of Partnership Firms Fundamentals | Accountancy

Related Topics

12th Accountancy : Chapter 3 : Accounts of Partnership Firms Fundamentals


Privacy Policy, Terms and Conditions, DMCA Policy and Compliant

Copyright © 2018-2024 BrainKart.com; All Rights Reserved. Developed by Therithal info, Chennai.