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Question
Pick the odd one out:
Options
Rent to Partner
Manager’s Commission
Interest on Partner’s Loan
Interest on Partner’s Capital
MCQ
Odd One Out
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Solution
Interest on Partner’s Capital
Explanation:
Interest on Partner’s Capital is not a charge against profits. It is distributed only when profits exist, and it is recorded in the Profit and Loss Appropriation Account, not in the Profit and Loss Account like the others.
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Distribution of Profit Among Partners
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