In a partnership, when interest is paid on loan to the partner, is it an appropriation of profit or not?

February 28th, 2011 Comments off
Share |

Earlier article described how a loan can occur in a partnership. 

Interest on loans from a partner is accounted for as an EXPENSE in the Profit & loss account and NOT as an appropriation of profit even though the interest is added to the current account of the partners.

Comments are closed now.