Analyse the following table and fill up the blank columns: (1) Where debited ........ to capital account (2) Part of the expected profit ........

Question

Analyse the following table and fill up the blank columns:

Basis of distinction		Drawings against profit	Drawings against capital
(1)	Where debited	(a) ?	To capital account
(2)	Part	Part of the expected profit	(b) ?
(3)	Effect	(c) ?	Reduces capital
(4)	Interest	(d) ?	Considered to calculate interest on capital

Answer 1

a) Drawing 

b) Part of capital 

c) Reduces Profit 

d) Considered to calculate interest on drawing