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When is the Debit to partner's capital a/c entry passed in accounts?

4. When is the Debit to partner's capital a/c entry passed in accounts?

1. Drawings are made
2. Investment is done
3. Interest on Drawings is charged
4. Capital is withdrawn

Answer: C) Interest on Drawings is charged

Explanation:

At the point when the Interest on drawings is charged to accomplices, Interest on Drawing Account is credited, and the Partner's Capital Account is charged. It is called a changing section. Changing sections are normally done toward the year's end for wages and costs.