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If interest on partners capital is not provided in the deed how will it be treated in capital account?

Answer and explanation

Correct answer: It will not be allowed

Interest on capital is allowed only when provided in the deed. If deed is silent it is not recorded in capital account.

Related tags

Interest On CapitalDeed SilentCapital AccountCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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