A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2021 · Q141 Mark
Which statement is correct in the absence of a partnership agreement?
AInterest is charged on drawings at 5%.
BOnly one partner can have a salary.
CPartners are not entitled to interest on capital.
DProfits and losses are shared in the ratio of partners' capital contribution.
✓ Correct answer
C: Partners are not entitled to interest on capital.
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