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If interest on capital is credited to partner account but not debited to appropriation account what is the problem?

Answer and explanation

Correct answer: Double effect is incomplete

The other side of interest on capital is debit in appropriation account. Leaving one side makes accounts incomplete.

Related tags

Double EffectInterest On CapitalErrorProfit DistributionPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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