Open In App

Journal Entry for Interest on Drawings

Last Updated : 05 Apr, 2023
Improve
Improve
Like Article
Like
Save
Share
Report

The amount withdrawn from the capital by the proprietor for personal use is called drawings. Businesses can charge interest on the amount of drawings.

Journal Entry: 

 

Example 1: Interest is charged on drawings ₹500.

Solution:

 

Example 2: 

  1. Withdrawn cash from the business for personal use ₹5,000.
  2. Interest charged on Drawings @6%.

Solution:

 


Like Article
Suggest improvement
Previous
Next
Share your thoughts in the comments

Similar Reads