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    Question

    In the absence of a Partnership Deed, the interest on a

    partner's loan is allowed at:
    A 12% per annum. Correct Answer Incorrect Answer
    B 10% per annum. Correct Answer Incorrect Answer
    C 6% per annum. Correct Answer Incorrect Answer
    D No interest is allowed. Correct Answer Incorrect Answer
    E Market rate of interest. Correct Answer Incorrect Answer

    Solution

    As per the Indian Partnership Act, 1932, if the deed is silent, partners are entitled to 6% p.a. interest on any loans/advances made to the firm beyond their capital.

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