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If the deed allows interest on capital to A and salary to B, when does the order of these items become important?

Answer and explanation

Correct answer: When profit is insufficient

When profit is insufficient, the limit and order of appropriations may depend on the deed. With enough profit, order usually does not change the result.

Related tags

Insufficient ProfitAppropriation OrderDeedPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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