๐Ÿ“ข Too many exams? Donโ€™t know which one suits you best? Book Your Free Expert ๐Ÿ‘‰ call Now!

  • google app store apple app store
  • โœ–

      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.

      Practice Next
      ask-question