Question

Accounting for partnership firms fundamentals in 2 solution

Answer 1

ANSWER

Accounting for partnership:-

a. No Salary is to be allowed to a partner

b. No Interest on Partner's Capital is to be allowed

c. Interest on Partner's Loan to be allowed at 6% p.a.

d. Distribution of Profit to be done in equal ratio

e. No Interest on Partner's Drawings to be charged.

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