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Benefits of Debentures

Providing Int...

Question

Providing Interest on Capital _______ net profit.

A

Reduces

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B

Increases

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C

No effect

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D

None

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Solution

The correct option is A Reduces
Interest on capital is a charge on the profits of a firm and it decreases the net available profit for appropriation.

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are partners sharing profits and lossesin the ratio of

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X

is a non-working partner and contributes

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