Accountancy, asked by chhaya7498, 4 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Cash or Goods withdrawn by a proprietor from the business for their personal use is labelled as drawings.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Cash or Goods withdrawn by a proprietor from the business for their personal use is labelled as drawings.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.

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