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The deed provides eight percent interest on partner loans. In this case when will the general six percent rule not apply?

Answer and explanation

Correct answer: When a clear rate is given in the deed

Clear agreement of partners applies before the general rule. So the rate stated in the deed will be used.

Related tags

Partner LoanInterest RateSpecific ClausePartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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