CameraIcon

SearchIcon

MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Recording Interest on Capital & Drawings

Interest on d...

Question

Interest on drawings is a/an for the business entity.

A

income

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

B

expense

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

asset

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

liability

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A income
Interest on drawings is charged when the owner withdraws money from the business. It is an income for the business entity.

Suggest Corrections

thumbs-up

0

Similar questions

Q. Interest on capital is a/an for the business entity.

Q. Drawings will the capital of the business entity.

Q. Depreciation is a/an for the business entity.

Q. Interest on drawing is ________ for the business.

Q. Outstanding expenses are considered as a/an for the business entity.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Transactions Omitted to Record

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Recording Interest on Capital & Drawings

Standard XI Accountancy

Join BYJU'S Learning Program

CrossIcon