Interest

Step 1: Concept of Interest on Drawings.
Interest on drawings is charged to the partners for the amount of money they withdraw from the business. It is calculated based on the amount withdrawn and the time for which it is withdrawn.
Step 2: One Method of Calculation.
One common method is the **Fixed Amount Method**, where interest is charged on the fixed amount of drawings made by a partner at a given rate of interest.
Step 3: Formula for Calculation.
Interest =
Step 4: Conclusion.
Thus, under the Fixed Amount Method, interest is charged on the fixed amount withdrawn by the partner over the time it was withdrawn. Final Answer:

Step 1: Concept of interest on drawings.
Interest on drawings refers to the amount paid by the partner to the firm for the use of capital withdrawn from the firm.
Step 2: Accounting treatment.
Interest on drawings is considered an income for the firm, as the firm earns it from the partner.
Step 3: Conclusion.
Thus, the correct answer is (C) Income. Final Answer: