Question

why interest on drawings is not paid in cash plz explain..?​

Answer 1

interest on drawings is to be charged if the partnership deed does not specify the rate of interest chargeable on drawings.Cash or Goods withdrawn by a proprietor from the business for their personal use is labelled as drawings.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.

Answer 2

Explanation:

So,no interest on drawings is to be charged if the partnership deed does not specify the rate of interest chargeable on drawings.