A partnership deed provides for the payment of interest on capital but there was a loss instead of profits during the year 2018-2019. At what rale will the interest on capital be allowed? Post category:Accountancy Reading time:1 mins read SOLUTION In case of loss, no interest on capital will be allowed. Please Share This Share this content Opens in a new window Twitter Opens in a new window Facebook Opens in a new window Google+ Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostState the provisions of the Indian Partnership Act., 1932, regarding charging of interest on drawings from a partner when: (a) The firm has a partnership deed; (b) The firm does not have a partnership deed. Next PostState the two situations under which interest on capital is generally provided. (C.B.S.E. 2019, Delhi) You Might Also Like Pass entries in firm’s Journal for the following on admission of a partner: (i) Unrecorded Investments worth Rs. 20,000 are to be accounted. (ii) Unrecorded liability towards suppliers for Rs. 5,000 is to be accounted. (iii) An item of Rs. 1,600 included in Sundry Creditors is not likely to be claimed and hence should be written back. August 1, 2022 Distinguish between ‘Dissolution of Partnership’ and ‘Dissolution of Partnership Firm’ on the basis of closure of books. (CBSE 2019) October 8, 2022 Srijan, Raman and Manan were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st, March, 2017 their Balance Sheet was as follows: July 26, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.