Accountancy, asked by arun2475, 11 months ago

intrest on drawing is which side shown in the balance sheet​

Answers

Answered by manishgoyal32
1

Answer:

It is deducted from capital in liabilities side of Balance sheet

Explanation:

Interest on drawing is income/revenue for Business (due to separate legal entity) and expense for owner or proprietor. Therefore it is deducted from capital just like drawing is deducted.

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