What is the nature of Interest on drawings account? Options: A . &nbspAsset B . &nbspIncome C . &nbspExpense D . &nbspLiability

What is the nature of Interest on drawings account?

Question

What is the nature of Interest on drawings account?

Options:

A . Asset

B . Income

C . Expense

D . Liability

Answer: Option B
:
B
Interest on drawings is an income for the business.

Was this answer helpful ?

Next Question

Question 1. If the closing stock is shown in the trial balance, it means___....

Question 2. Having agreed on a monthly rent of Rs 18,000 for business premises rented to Mr Ravi, three months rent was in arrears a....accrued in the financial statements as at 31st March 2018?

Question 3. Which account is credited while creating a provision for doubtful debts in the books?....

Question 4. Which of the following is the effect on net income, if a business creates a provision for doubtful debts?....

Question 5. At the year-end, the total interest on capital is ______ to the profit & loss account?....

Question 6. While doing the adjustment entry for the managerial commission, which account shall be credited?....

Question 7. Which of the following shall need adjustments in accounting?....

Chapter 1 - GLOBAL STEEL SCENARIO & INDIAN STEEL INDUSTRY Part 1 : (13-04-2024) INDUSTRY AND COMPANY AWARENESS (ICA)

Direction Sense Test Part 1 Reasoning (Hindi)

Chapter 1 - RMHP / OHP / OB & BP Part 1 : (14-02-2024) GPOE

Cube & Cuboid Part 1 Reasoning (Hindi)

Data Interpretation (DI) Basic Concept Reasoning (Hindi)

Counting Figures Part 1 Counting Of Straight Lines Reasoning (Hindi)

Sail E0 free webinar Webinars

Real Numbers Part 7 Class 10 Maths

Real Numbers Part 1 Class 10 Maths

Polynomials Part 1 Class 10 Maths

Pie Chart - Test Paper 1 Data Interpretation Reasoning & DI

Tabulation - Test Paper 2 Data Interpretation Reasoning & DI

Test Paper 1 Direction Sense Test Reasoning & DI

ICA , RDIC,GFM Free Modal Test Paper - Non - Technical Branch Old Syllabus 2022 - SAIL Junior Officer E0

GFM Combined 1 Free Revision Test SAIL JO E-0