WAEC - Accounts Principles Of Accounts (2015 - No. 36)

In which of the following accounts is interest on partners capital found?
Profit and Loss
Trading
Income surplus
Profit and Loss appropriation

Explanation

The main intention of preparing a profit and loss appropriation account is to show the distribution of profits among the partners. It is debited with interest on capital and remuneration to partners and credited with the net profits b/d from the profit and loss account and interest on drawings.

Comments (0)

Advertisement