Which of the following is the correct way of accounting for interest charged on a partner’s drawings?
(a) Debit an expense account (to be shown in Income statement) and credit Current account
(b) Debit Current account and credit in the appropriation section of the Statement of income
(c) Debit in the appropriation section of the Income statement and credit Current account
(d) Debit Current account and credit an income account (to be added to partnership gross profit)