Accounting Multiple Choice Question – 15 October 2024

What journal is necessary to record interest payable on partners’ drawings?

Select ONE answer:

1. Debit Partners’ drawings accounts, Credit Partners’ current accounts
2. Debit Profit and loss appropriation account, Credit Partners’ drawings accounts
3. Debit Partners’ drawings accounts, Credit Interest payable account
4. Debit Partners’ current accounts, Credit Profit and loss appropriation account

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 4

1. Not correct
2. Not correct
3. Not correct
4. Correct == >. Interest payable by partners increases the amounts of profits available for appropriation (credit appropriation account) it must be charged against the partners’ current accounts (debit partners’ current accounts).

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