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Law · Q102

Indian Partnership Act

Graduate and Post Graduate · Law · question 102

Q102

In respect of a sum of money given by a partner to the firm, in addition to the capital contributions, is a loan to the business which ranks

A.
Above the outside creditors
B.
Equal to the outside creditors
C.
Lower than the outside creditors
Answer
D.
The same as claim of the partners on capital account

Answer: Option C

Solution

Answer: Option C
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