O-LevelAccountingAccounting procedures7707/11 · Oct/Nov 2015 · Q201 Mark

A partner made a loan to the business. How was the interest on this loan recorded?

Aas a credit in the appropriation account

Bas a credit in the income statement

Cas a debit in the appropriation account

Das a debit in the income statement

✓ Correct answer

D: as a debit in the income statement

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2015 Paper 1 Variant 1, question 20.

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