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| 1. |
Interest on loan by partner is transferred to which account Partners capital accountPartners current accountPartners loan accountNone of the above |
| Answer» EXPLANATION:Before it is INFORMED, it is proper to UNDERSTAND the meaning of above terms. No explanation is given hereunder:-1. Partner's Capital A/c > This account exists in all the firms without any exception until the capital has been wiped out. But in certain firms they keep the Capital intact/fixed and open a current account wherein all the transactions day to day/periodically are routed through it.2. Partner's Current A/c > As informed above3. Partner's Loan A/c. > where any partner has granted a loan to the firm, and may or may not have given the standing instructions to CREDIT the amount of interest in loan a/c, as such it will be treated according to the instructions given by the partner.In the captioned case: all the three may be the possibilities but it depends upon the instructions given by the partner/maintaining current account.Best possibility in this case is s under:-Capital is treated as fixed.Loan is also termed as TERM LoanPossibility left is to get the amount of interest credited in the current account provided, it is being maintained in the firm | |