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State the Two Situations in Which Interest on Partner'S Capital is Generally Provided. - Accountancy

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Question

State the two situations in which interest on partner's capital is generally provided.

Solution

(a) When the partnership deed contains a clause in respect of provision of interest on capital.
(b) When there is a credit balance in the partners' capital accounts.

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Accounting for Share Capital
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2016-2017 (March) Foreign Set 1

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