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If the deed is silent why will interest on partners capital not be recorded in capital accounts?

Answer and explanation

Correct answer: Because interest on capital is not payable without provision

Interest on capital is allowed only when written in agreement. If deed is silent it is not taken to capital or current account.

Related tags

Deed SilentInterest On CapitalCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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