Accountancy, asked by prakhar157, 11 months ago

what is accounting equation for interest on drawings

Answers

Answered by princesskajal

Answer:

Interest on Drawings is charged from the owner for the withdrawals made by him. Therefore, it is an expense for the owner and an income for the business. So, it is shown as a deduction as well as addition to Owner's Equity in the Accounting Equation.

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