Question

The interest on drawings is transferred to ________ side ot the profit and loss account. (Fill in the blank by choosing correct option)
a) debit
b) credit
c) asset
d) liability

Answer 1

B → CREDIT SIDE OF PROFIT AND LOSS AC..

IS AN INDIRECT INCOME OF THE BUSINESS

Answer 2

Answer:

The answer must  be the option (b) Credit

Explanation:

The interest on drawings must be considered as a profit, or to the reserve.

So, the answer of that question definitely goes for the question to the credit.

By the definition of credit, we know that the credit is an accounting entry Which can be the  increases a liability or equity account, or expense account, decreases an asset.