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Question
Partners are supposed to pay interest on drawings only when ______ by the ______.
Options
Provided, Agreement
Permitted, Investors
Agreed, Partners
‘Provided, Agreement’ and ‘Agreed, Partners’
MCQ
Fill in the Blanks
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Solution
Partners are supposed to pay interest on drawings only when provided by the agreement and agreed to by the partners.
Explanation:
Interest on drawings is paid by partners only if it is explicitly mentioned in the partnership agreement and agreed upon by the partners. This ensures clarity and mutual consent on the terms of interest.
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