wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Where a partner is entitled to interest on capital subscribed by him, such interest will be payable ___________.

A
only out of profit
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
only out of capital
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
out of profits or out of capital
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
none of these
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is A only out of profit
Where a partner is entitled to interest on capital subscribed by him, such interest will be payable only out of profit. Interest on capital is an appropriation and hence will be provided only out of profits.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Sources of Finance I
BUSINESS STUDIES
Watch in App
Join BYJU'S Learning Program
CrossIcon