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State two differences between a partner’s loan account and a partner’s capital account. - Accounts

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प्रश्न

State two differences between a partner’s loan account and a partner’s capital account.

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उत्तर

Basis Partner’s Loan Account Partner’s Capital Account
Nature It is a liability for the firm. It represents the partner’s ownership in the firm.
Interest Interest is a charge against profits and is paid even if there is a loss. Interest is an appropriation of profits and paid only out of profits.
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पाठ 1: Accounting for Partnership Firms - Fundamentals - SHORT ANSWER QUESTIONS [पृष्ठ १.१३४]

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डी. के. गोएल Accountancy Volume 1 and 2 [English] Class 12 ISC
पाठ 1 Accounting for Partnership Firms - Fundamentals
SHORT ANSWER QUESTIONS | Q 62. | पृष्ठ १.१३४
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