Practicing Success
Practicing Success
CUET Preparation Today
| Which of the following is to be considered as Interest on partner's Capital? |
An appropriation A gain An expenditure None of above |
| An appropriation |
| Interest on capital will be paid to the partners if provided for in the agreement but only from profits. Interest on capital is an appropriation and not a charge against profit hence, is provided only to the extent of profits. |
