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The firm gave a loan of ₹100000 to B. The deed is silent. What is the correct treatment of interest on this loan?

Answer and explanation

Correct answer: No interest will be charged

Interest on loan given by the firm to a partner is charged only if the deed provides it. Keep it separate from partner's loan to the firm.

Related tags

PartnershipLoan To PartnerDeed SilentAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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