In a partnership account, interest on drawings is
...In a partnership account, interest on drawings is
Debited to appropriation account
Credited to appropiation account
Treated as an expense in profit and loss account
Recorded in the balance sheet as current assets
Correct answer is B
Charging interest on drawings is a means of discouraging partners from withdrawing excessive amounts from the business. From this, it follows that interest on drawings is a debit entry in the partners' current accounts and a credit entry in the Appropriation Account.
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