A-LevelAccountingPreparation of financial statements9706/12 · May/June 2015 · Q121 Mark

How should interest charged on a partner's drawings account be treated?

Acredited to the appropriation account

Bcredited to the income statement

Cdebited to the appropriation account

Ddebited to the income statement

✓ Correct answer

A: credited to the appropriation account

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2015 Paper 1 Variant 2, question 12.

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