Question : Interest on capital up to the date of his death/ if allowed by the Partnership Deed. Will be -------- to his capital account.
Option 1: Debited
Option 2: Credited
Option 3: Either 1 and 2
Option 4: None of the above
Answer (1)
20th Jan, 2024
Correct Answer: Credited
Solution : Answer = Credited
Interest on capital up to the date of death, if permitted by the Partnership Deed, is credited to the deceased partner's capital account. This is because interest earned on capital represents an increase in the partner's share of the partnership's equity, and therefore, it is credited to the capital account.
Hence, the correct option is 2.
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