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 Partners are suppose to pay interest on drawings only when ……………..by the ………
  • a)
    Provided, Agreement
  • b)
    Permitted, Investor
  • c)
    Agreed, Partners
  • d)
    Both (a) & (c) above 
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Partners are suppose to pay interest on drawings only when …&he...
They exceed their share of the profits for the period. In other words, if a partner takes out more money than their share of the profits, they are essentially borrowing from the partnership and should pay interest on those excess drawings. However, if their drawings are within their share of the profits, they do not need to pay interest.
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Community Answer
Partners are suppose to pay interest on drawings only when …&he...
Intrest on drawings are only charged when parrners agreed on it,otherwise there will be no interest on drawings charged by the firms on partners.both option A and option C are given tbe same meaning by changing a little in words,so they both are correct
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