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How do you treat the following in the absence of partnership deed? (a) Interest on capital (b) Interest on drawings (c) Interest on loan (d) Distribution of profit or losses (e) Salary to partner. |
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Answer» (a) Interest on capital – Nil (b) Interest on drawings- Nil (c) Interest on loan – 6% P.a (d) Distribution of profit or losses – Equally (e) Salary to partner – Nil |
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