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P1 C1 INTRODUCTION OF PARTNERSHIP — Elements of Account STD 12 Commerce — Question

Gujarat BoardEnglish MediumSTD 12 CommerceElements of AccountP1 C1 INTRODUCTION OF PARTNERSHIP1 Mark
Question
Write the accounting effect for interest on partners loan.
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Answer

Considering interest on partners loan as an expense, it will be debited to profit and loss account, and credited to partners current or capital account.

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