In partnership accounts, interest on drawings is charged when: MCQ with Answer and Explanation

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In partnership accounts, interest on drawings is charged when:

A. The partners have equal capital

B. The firm makes a profit

C. It is agreed upon in the partnership deed

D. It is mandatory as per Partnership Act 1932

Answer: Option C

Solution (By JKSSB Mock Tests)

Interest on drawings is only charged if it is explicitly mentioned and agreed upon in the partnership deed.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Correct Answer: Option D

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