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Class 12 Accountancy Partnership Accounts - Basic Concepts Partnership DeedMedium

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If the interest on capital rate is changed during the year in the deed, what is the correct exam approach?

Answer and explanation

Correct answer: Apply different rates according to time

When the rate changes, interest is calculated separately for each period. In exams note both date and rate.

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Interest Rate Change Interest On Capital Time Basis Partnership Deed Partnership Accounts Basic Concepts Accountancy Class 12 Mcq

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