When we adjust interest on drawing with the capital account balance, then account will be debited, and account will be credited.

partner's capital

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interest on capital

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revaluation

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interest on drawing

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Solution

The correct options are
A partner's capital
D interest on drawing
Charging interest on drawings is a means of discouraging partners from withdrawing excessive amounts from the business.The partner's capital account will be debited and interest on drawing account will be credited, when we adjust interest on drawing amount with his capital balance.

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Which of the following account will be debited when the interest on drawings is charged and partner's follow fixed capital method?

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