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The deed allows interest on capital but a partner introduced additional capital during the year. On what basis should interest be calculated?

Answer and explanation

Correct answer: On time basis

Interest on capital introduced during the year is calculated on time basis. Reading dates carefully is essential in hard questions.

Related tags

Interest On CapitalAdditional CapitalTime BasisPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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