In case of Fixed Capital Account, Interest on Drawings are

Under the Fixed Capital Account system, partners maintain two separate accounts:

• Capital Account (remains fixed)
• Current Account (records all adjustments)

Interest on Drawings is a charge levied on partners for withdrawing money from the business. Since it represents an amount the partner owes to the firm, it reduces the partner's entitlement.

In the Fixed Capital Account system, all adjustments including interest on drawings, interest on capital, salary, commission, and share of profit/loss are recorded in the Current Account only. The Capital Account remains unchanged unless there's fresh capital introduced or permanent withdrawal.

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Journal Entry for Interest on Drawings:

Particulars	Debit (₹)	Credit (₹)
Partner's Current Account Dr.	xxx
$\quad$ To Profit & Loss Appropriation Account		xxx

Since Interest on Drawings is a charge against the partner (reduces partner's claim), it is debited to the Partner's Current Account.

The Capital Account is not touched because it is meant to remain fixed in this system.

Correct Option: 3 - Debited to current account.