alleryUnder Section 13(c), where a partner is entitled to interest on the capital he subscribed, such interest is payable:
AIn all circumstances
BOnly out of profits
CAt 6% even if there are losses
DOut of capital
Answer & Solution
Correct answer: B. Only out of profits
Section 13(c): interest on capital, where allowed, is payable only out of profits
it is not paid where the firm has no profits.
Keep practising Partnership Accounts
Browse all Partnership Accounts questions for AP Intermediate 2nd Year, or explore more Accountancy topics.
Related questions
Under Section 18, with respect to the business of the firm, a partner is:Under Section 14, which of the following is regarded as property of the firm?Under Section 13(f), a partner must indemnify the firm for loss caused by his:Under Section 13(d), a partner who makes a payment or advance beyond his agreed capital isUnder Section 13(b), in the absence of agreement, partners share profits and losses:Under Section 12(d), every partner (whether active or sleeping) has the right to:Under Section 12(c), a change in the NATURE of the firm's business requires:The name under which the business of a partnership is carried on is called the: