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If profit is to be distributed only after allowing interest on capital which credit item will first appear in partners account?

Answer and explanation

Correct answer: Interest on capital

Interest on capital is an amount allowed to partner and may be given before profit sharing. It is credited in the account.

Related tags

Interest On CapitalCredit ItemProfit DistributionCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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