question_answer

X and Y are partners sharing profits and losses in the ratio of 5:3. As per the partnership deed interest on capital is allowed @10% p.a. There is loss during the year Rs.70,000 instead of profits. Interest on capital will be:

A) Allowed @ 10% p.a.      

B) Allowed @ 6% p.a. due to loss

C) No interest on capital due to loss

D) Allowed @ 5% p.a. only