Interest on Drawings
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MS: Faedah atas Ambilan · EN: Interest on Drawings · ZH: 提款利息
Meaning
Interest on drawings is a charge or penalty imposed on a partner for withdrawing money or goods for personal use. Its purpose is to discourage excessive drawings. It is recorded on the credit side of the Appropriation Account.
Example
Faisal makes drawings of RM10,000 and is charged interest on drawings of 4%, that is RM400, credited to the Appropriation Account.
Source: DSKP KSSM Prinsip Perakaunan Tingkatan 5