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Match the following items: (i) When partnership deed does not provide for interest on capital. (ii) When partnership deed provides for interest on capital but is silent on whether it is charge

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Question

Match the following items:

(i) When partnership deed does not provide for interest on capital. (a) Interest on capital is not allowed.
(ii) When partnership deed provides for interest on capital but is silent on whether it is charge or appropriation. (b) Interest on capital is allowed in all circumstances.
    (c) Interest on capital is allowed if there is profit in the firm.
Match the Columns
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Solution

(i) When partnership deed does not provide for interest on capital. (a) Interest on capital is not allowed.
(ii) When partnership deed provides for interest on capital but is silent on whether it is charge or appropriation. (c) Interest on capital is allowed if there is profit in the firm.
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Chapter 1: Accounting for Partnership Firms - Fundamentals - OBJECTIVE TYPE QUESTIONS [Page 1.444]

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D. K. Goel Accountancy Part A Volume 1 and 2 [English] Class 12
Chapter 1 Accounting for Partnership Firms - Fundamentals
OBJECTIVE TYPE QUESTIONS | Q (D) 3. | Page 1.444
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