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If the deed says interest on capital is to be calculated on opening capital, what happens to additional capital introduced during the year?

Answer and explanation

Correct answer: No interest unless deed allows

The deed has made opening capital the base. Additional capital earns interest only if the clause allows it.

Related tags

Opening CapitalAdditional CapitalInterestPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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