Have you seen the interest on drawing?
When interest on capital came with capital, then here
interest on drawing will also come with drawing 4 super hit
songs on red FM
Have you ever heard?
You haven't heard radio, 4 super hit songs on red FM
So you have to learn interest on drawing also
Can you tell?
Whose interest on drawing will be opposite?
Interest on capital
I am the owner, this is the business
I have given money to the business, this is capital
investment
In return, the business will give me interest
That is interest on capital
I have withdrawn money from the business, that is drawings
In return, the business that I will give interest to will
be called interest on drawings
Because business says that if we give you interest on
capital then we will also charge you interest on drawings
The money that you have withdrawn and taken home
If you let it stay here
If you let it stay here, my dear friends
Then what happens?
The business gets interest
So this time you are cutting the opportunity cost of the
business
That is why you have to pass the entry of interest on
drawings
Now think a little in your mind and make an image
For whom is interest on capital income and for whom is it
an expense?
Sir, interest on capital is an expense for the business and
income for the owner
And interest on drawing comes from the owner's pocket
It is an expense for him and income for the firm and
business
He gets it
Okay Interest charged from owners against drawings made by
them is called interest on drawings
It is an income for the business
So friends, the way we made the account of interest on
capital in the head of indirect expense
Where will the account of interest on drawing be made?
Indirect income
Very good
Steps are written
Go to the voucher
Entry will be in F7 journal
The owner's capital account will be debit
Remember the entry of interest on capital
Interest on capital expense was debited for the firm
And put that money in the owner's capital
The owner's capital account was credited
There will be an opposite entry
What will we do with the owner's capital account?
We will debit
We will debit the owner's capital account
Instead of this, we will use the drawing account
And enter the amount
What will we do with the credit after that?
Interest on drawings account
Which will be under indirect income
Have you heard the rule?
Credit all income and gain
Yes sir, I have heard
Credit all income and gain
So this is an income for the firm
Interest on drawing
That's why the firm will credit it
And press CTRL plus A
Let's do a live on teleprime
What I want to say
Let's do it on the face of teleprime
Press V for Voucher
V for Voucher
Done Stay in journal voucher
What will be the debit?
Drawings Drawings Very good
Interest for example
I am saying 8000 rupees
Take 8000 rupees
Enter Dude, we did a drawing of 1 lakh 8%
How much did we take interest on capital? 10,000 Then it's
fine 8000 Credit
Credit Interest on drawing
Which you have to create by pressing ALT C
Create Interest on drawings account
In which setting will it come?
Under indirect income
Very good
This is an income
And press A with CTRL
And write narration in enter
Being interest
Charged by a firm on drawings
Being interest charged by a firm on
Drawings made by owner
Friends, what should be the effect of this entry?
Think about your balance sheet and profit and loss account
Sir, our drawings should increase by 8000 rupees
Yes The way interest on capital money
Increases the balance of capital
In the same way, the money of interest on drawing
Increases the money of drawing
Ok Ok And interest on drawing is income for the firm
So it should be seen on the credit side in P&L
The way the debit side in P&L
Interest on capital
So let's take control and see this
Take control
Escape twice
Come to the gateway of telly
Press B for balance sheet
Press F1 with ALT
And see the drawing is done 1,18,000 rupees
Your drawing amount has increased by 8000 rupees
Click on 10,40,000 below
Enter twice
The way this 10,000 rupees
The balance of interest on capital
Increased your capital
In the same way
The interest on drawing of 8000 rupees
Increases the balance of your drawings
By 1,18,000
Escape and come to P&L
Press ALT F1
And see the way the interest on capital
Expenses for the firm
Debit side is coming in indirect expense
Similarly, interest on drawing
Income for the firm
Credit side is coming
Interest on drawing 8000 in the name of indirect income
Your loss is also reduced
How much is left now? 2000 rupees
How much is left? 2000 rupees
So let's go
Capital Interest on capital
Three ways of capital
Bank, cash and in-kind
Drawing Three ways of bank, cash, in-kind
And interest on drawing
All the things come here
We will discuss further
Until then
You revise these things
And keep practicing continuously
Ok Sir