How would you consider the interest on debit balance of partner's current account for the partnership firm?
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His drawings are greater than the amount of profits due to him, and he becomes a temporary debtor of the business. Hence, a debit balance in a partner's current account appears as a current asset on the balance sheet.
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Aɴsᴡᴇʀ✯
His drawings are greater than the amount of profits due to him, and he becomes a temporary debtor of the business. Hence, a debit balance in a partner's current account appears as a current asset on the balance sheet.
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