Accountancy Part AAccounting for Partnership

If the partnership deed is silent regarding Interest on the partner's…

If the partnership deed is silent regarding Interest on the partner's loan, the following provision of the Indian Partnership Act 1932 will be applicable:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → 6% p.a.

NCERT (2026-27 edition):
Provisions of Partnership Act Relevant for Accounting – “… (d) Interest on Loan: If any partner has advanced loan to the firm for the purpose of business, he/she shall be entitled to get an interest on the loan amount at the rate of 6 per cent per annum.”