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If the deed has both interest on capital and interest on drawings, what is the correct difference?

Answer and explanation

Correct answer: Interest on capital benefits partner and interest on drawings benefits firm

Interest on capital is given to the partner, while interest on drawings is charged from the partner. Remember this basic difference.

Related tags

Interest On CapitalInterest On DrawingsDifferencePartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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