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The deed says interest on capital will be allowed only on opening capital. A introduced additional capital during the year. On what will interest be allowed?

Answer and explanation

Correct answer: Only on opening capital

The deed clearly makes opening capital the base. Additional capital gets interest only if separately provided.

Related tags

Opening CapitalAdditional CapitalInterest On CapitalPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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