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The deed is silent on loan interest rate and the firm has incurred loss. What happens to interest on partner loan?

Answer and explanation

Correct answer: Six percent per annum will be allowed

Interest on partner loan is a charge against profit. If the deed is silent six percent interest is allowed even in loss.

Related tags

Partner LoanLossInterestPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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