In the profit and loss appropriation account, the interest on drawings is recorded on the __________ side and interest on partner's loan is recorded on the __________ side, respectively.
credit; debit
In the profit and loss appropriation account, the interest on drawings is recorded on the credit side (as it is an income for the firm), and the interest on the partner's loan is recorded on the debit side (as it is an expense for the firm). This reflects the firm’s obligation to pay interest on loans provided by partners.
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