CBSE 2025, Set 2

Question

Manoj, Dilip and Rajinder were partners in a firm sharing profits and losses in the ratio of 7:3:5. Their fixed capitals were ₹10,00,000, ₹8,00,000 and ₹6,00,000, respectively. The partnership deed provided for interest on partners' drawings @ 12% p.a. Which of the following accounts will be debited for charging interest on partners' drawings? A). Partners' Capital Account B). Profit and Loss Appropriation Account C). Interest on Drawings Account D). Profit and Loss Account

Edvaya · Accepted Answer

The correct answer is None of the given options (Partners' Current Account). **Correct Answer:** Partners' Current Account **Note from Official Marking Scheme:** "As there is no option in MCQ for the correct answer, therefore, 1 mark is to be awarded to all the examinees." When capitals are fixed, all adjustments including interest on drawings are debited to the Partners' Current Accounts, which is missing from the options.

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Accountancy > Accounting For Partnership Firms > Fundamentals Of Partnership

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