O-LevelAccountingAccounting procedures7707/11 · Oct/Nov 2011 · Q221 Mark

A partnership agreement states that interest on drawings will be charged. How is this recorded?

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Adebit: appropriation account, credit: partners' current accounts

Bdebit: bank account, credit: partners' current accounts

Cdebit: partners' current accounts, credit: appropriation account

Ddebit: partners' current accounts, credit: bank account

✓ Correct answer

C: debit: partners' current accounts, credit: appropriation account

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2011 Paper 1 Variant 1, question 22.

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