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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


Team Careers360 12th Jan, 2024
Answer (1)
Team Careers360 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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