Chhavi and Neha were partners in a firm sharing profits and losses equally. Chhavi withdrew a fixed amount of Rs. 6,000 at the beginning of each quarter. Interest on drawings is charged @ 6% p.a. Pass necessary journal entry for charging interest on drawings at the end of the year. (C.B.S.E. 2019, M.P.)


Chhavi’s Capital A/c      Dr.                   900
To Interest on Drawings A/c                                   900
(Interest on drawings charged)

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