Identify the correct statement/s from the following:I. In absence of partnership agreement, no interest on capital is allowed II. In absence of partnership agreement, 6% interest on partner's loan is allowed O a. Statenment II only correct O b. Statement I only correct O c. Both Statements are correct O d. Both Statements are wrong

Identify the correct statement/s from the following:I. In absence of partnership agreement, no interest on capital is allowed II. In absence of partnership agreement, 6% interest on partner's loan is allowed O a. Statenment II only correct O b. Statement I only correct O c. Both Statements are correct O d. Both Statements are wrong

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Identify the correct
statement/s from the
following:I. In absence of
partnership agreement, no
interest on capital is allowed II.
In absence of partnership
agreement, 6% interest on
partner's loan is allowed
O a. Statement II only
correct
O b. Statement I only correct
O c. Both Statements are
correct
O d. Both Statements are
wrong

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