Which of the following adjustments would not affect the net profit of a sole trader?

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Interest on drawings is an appropriation of profit in sole proprietorship? Actually in sole proprietorship, drawings are not subject to interest unless specifically decided for managerial accounting. But in financial accounting for sole traders, interest on drawings is not charged to P&L. It reduces capital directly if considered. So it does not affect net profit. Others affect P&L.

Which of the following adjustments would not affect the net profit of a sole trader? MCQ with Answer and Explanation

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