CUET Preparation Today
If the partnership deed is silent on interest on capital, then: |
No interest on capital is payable Interest on capital is only paid to partner contributing more capital. Interest on capital is paid equally to all partners Interest on capital is paid @ 6% p.a. |
No interest on capital is payable |
The correct answer is Option (1) → No interest on capital is payable. If the partnership deed is silent on interest on capital, then No interest on capital is payable. Interest on Capital: No partner is entitled to claim any interest on the amount of capital contributed by him in the firm as a matter of right. However, interest can be allowed when it is expressly agreed to by the partners. Thus, no interest on capital is payable if the partnership deed is silent on the issue. |
