Question

why does the interest on drawings appears in the profit & loss appropriation account?​

Answer 1

interest on drawings appears on the credit side of profit & loss account because Cash or Goods withdrawn by the Businessman for his personal use from the business is called Drawings. In Such a case, Interest is charged on such drawings from the Businessman. Interest on drawings is an income for the business, So interest on drawings account is credited.

Mark BRAINLIEST

Answer 2

Answer:

when an owner withdraws money or goods from the business it is recorded as drawings taken for personal use. hence there is an interest that is charged on those drawings which is regarded as an income to the business

interest on drawings account is credited

while drawings account is credited.