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प्रश्न
State Whether the following Statement is True or False:
Interest on partner's loan is credited to his capital account.
चूक किंवा बरोबर
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उत्तर
The statement is false.
Explanation:
Interest on a partner's loan is credited to the Partner's Loan Account, not to the Capital Account. It is treated as a business expense and is payable even if the firm incurs a loss, unless otherwise agreed.
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