What is the accounting entry of intrest on drawings?
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Interest on drawings refer to income of the business on drawings.
Hence its journal entry
Interest on drawings a/c dr
To Drawings a/c
Whenever business closed the accounts then entry be.
profit and loss appropriation a/c dr.
To interest on drawings a/c
^_^❤
Hence its journal entry
Interest on drawings a/c dr
To Drawings a/c
Whenever business closed the accounts then entry be.
profit and loss appropriation a/c dr.
To interest on drawings a/c
^_^❤
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