Sometimes the partnership agreement may specify that interest is to be charged on partner's drawings.Which of the following is the main reason for such a charge?

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Charging interest on partner's drawings can act as a disincentive to partners withdrawing excessive amounts from the partnership, as they would be required to pay interest on the amount borrowed. This helps to ensure that adequate funds remain in the partnership to meet its obligations and invest in its growth. It also encourages partners to be mindful of their withdrawals and to maintain a long-term perspective on the partnership's financial health.

Sometimes the Partnership Agreement May Specify That Interest Is to Be