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What is interest on capital in a partnership ac... - SS2 Accounting Partnership Account: Terminologies Used Question

What is interest on capital in a partnership account?

A

The amount of money paid by the partnership to each partner for the use of their invested capital

B

The amount of money owed by the partnership to creditors

C

The portion of profits that is set aside for future business needs or as a contingency fund

D

The allocation of profits among partners based on their ownership percentage

correct option: a
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