When the interest on loan/advance is allowed to partners _________.

capital account is credited

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current account is credited

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loan account is credited

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loan account is debited

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Solution

The correct option is C loan account is credited
When the interest on loan/advance is allowed to partners loan account is credited. The interest amount will be added/credited in the loan account. Thereby increasing the amount to be repaid.

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When the interest on loan/advance is allowed to partners _________.

The correct option is C loan account is creditedWhen the interest on loan/advance is allowed to partners loan account is credited. The interest amount will be added/credited in the loan account. Thereby increasing the amount to be repaid.

The correct option is C loan account is credited
When the interest on loan/advance is allowed to partners loan account is credited. The interest amount will be added/credited in the loan account. Thereby increasing the amount to be repaid.