what do you mean by interest on drawings account
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Interest on drawings is an income for the business, hence, it is added to theinterest account of the firm thereby increasing the total income of the business. In common scenarios whereinterest on capital is charged by the owner, interest on drawings is also charged by the business.
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Interest on drawing is an income for the business , here it is added to the intrest account of the firm thereby increasing the total income of the business.
In comman scenarios where interest on capital is charged by the owner interested on drawings is also charged by the business .
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