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A took a loan of ₹50000 from the firm. According to the deed interest is chargeable at 12%. What type of item will it be for the firm?

Answer and explanation

Correct answer: Firm's income and debit to A's account

The firm has given a loan to the partner so interest is income for the firm. It is debited to the concerned partner's account.

Related tags

PartnershipLoan To PartnerInterestAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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