Accountancy, asked by chhaya7498, 3 months ago

why interest on drawings is due instead of directly receiving in cash???

Answers

Answered by Anonymous

0

Answer:

Cash or Goods withdrawn by a proprietor from the business for their personal use is labelled as drawings. ... Interest on drawings is an income for the business, hence, it is added to the interest account of the firm thereby increasing the total income of the business.

Answered by ayushanand42

0

Answer:

Cash or Goods withdrawn by a proprietor from the business for their personal use is labelled as drawings. ... Interest on drawings is an income for the business, hence, it is added to the interest account of the firm thereby increasing the total income of the business.

Previous Question

Next Question

Similar questions

English, 1 month ago

Brother cook likes to my...

Computer Science, 1 month ago

Determine the output of the following program. #include<iostream> using namespace std; int g=20; void func(int &x, int y) { x=x-y; y=x*5; cout<<x<<”,”<<y<<endl; } int main() { int g=10; func(g,::g); cout<<g<<”,”<<::g<<endl; return 0; }...

Math, 1 month ago

how can we find LCM of two numbers with step by step explanation ...

Math, 3 months ago

Subtract 2a-b+3c from a +26-c...

Science, 3 months ago

Read The Following Sentences Carefully And Choose Which Of The Statements Is Or Are Incorrect? [A]. The digestion of food starts in stomach and the digestion is complete in large intestine. [B]. The stomach is widest part of alimentary canal. [C]. The HCL kills many bacteria and makes the medium in the stomach acidic and help in digest. [D]. When we swallow food, the epiglottis flattens backward...

Physics, 10 months ago

help me solve this..

Science, 10 months ago

which is the example of bird 1.kiwi 2.rat 3.man 4.none...

Math, 10 months ago

A sum of money becomes 1.1025 times in 2 Years at compound interest. The rate of interest per annum is a) 20% b) 5% c)8% d) 10%...