a) If the partnership deed is silent as to the payment of interest on capital and the profit for the year is Rs. 50,000. (b) If partnership deed provides for interest on capital @ 8% p.a. and the firm incurred a loss of Rs. 10,000 during the year. (c) If partnership deed provides for interest on capital @ 8% p.a. and the firm earned a profit of Rs. 50,000 during the year.
X and Y are partners sharing
accounts showed balances of Rs. 1,50,000 and Rs. 2,00,000 respectively on Jan 01, 2019. Show the treatment of interest on capital for the year ending December 31, 2019 in each of the following alternatives:
(a) If the partnership deed is silent as to the payment of interest on capital and the
profit for the year is Rs. 50,000. (b) If partnership deed provides for interest on capital @ 8% p.a. and the firm
incurred a loss of Rs. 10,000 during the year. (c) If partnership deed provides for interest on capital @ 8% p.a. and the firm
earned a profit of Rs. 50,000 during the year. (d) If the partnership deed provides for interest on capital @ 8% p.a. and the firm
earned a profit of Rs. 14,000 during the year
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