why interest on drawings is due instead of directly receiving in cash???
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Cash or Goods withdrawn by a proprietor from the business for their personal use is labelled as drawings.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.
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Cash or Goods withdrawn by a proprietor from the business for their personal use is labelled as drawings.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.
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