Accounting Multiple Choice Question – 13 October 2024

How should interest charged on partners’ drawings be dealt with ni partnership financial statements?

Select ONE answer:

1. Credited as income in the income statement
2. Deducted from profit ni allocating the profit among the partners
3. Added to profit in allocating the profit among the partners
4. Debited as an expense in the income statement.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct == > Added to profit in allocating the profit among the partners
4. Not correct

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