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If the deed is silent which combination about interest on capital and interest on drawings is correct?

Answer and explanation

Correct answer: Neither will be allowed or charged

Under a silent deed neither interest on capital nor interest on drawings applies automatically. Partner's loan rule is different.

Related tags

PartnershipDeed SilentInterest RulesAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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