Question : Which of the following is not recorded on the credit side of current accounts of partners?
Option 1: Interest on capital
Option 2: Partner's Salary
Option 3: Interest on partner's loan
Option 4: Share of profits to partner
Answer (1)
17th Jan, 2024
Correct Answer: Interest on partner's loan
Solution : Interest on partner's loan is a charges against profit, so it will be debited to Profit and Loss A/c. Hence, the correct option is 3.
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