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Class 12 Accountancy Partnership Accounts - Basic Concepts Partnership DeedEasy

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If the partnership deed states interest on drawings (5%) what will happen?

Answer and explanation

Correct answer: Interest at (5%) will be charged on drawings

The deed has a clear rate so interest on drawings will be charged. It is treated like income for the firm.

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Interest On Drawings 5 Percent Deed Partnership Deed Partnership Accounts Basic Concepts Accountancy Class 12 Mcq

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