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Assertion (A) : In order to compensate a partner for contributing capital to the firm in excess of the profit sharing ratio, firm pays such interest on Partners’ Capital. Reason (R) : Interest on Capital is treated as a charge against profits. a) Both A and R are true and R is the correct explanation of A b) Both A and R are true and R is not the correct explanation of A c) A is true , but R is false d) A is false , but R is true |
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Answer» c) A is true , but R is false |
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