Practicing Success
Practicing Success
CUET Preparation Today
There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below. Assertion (A): Interest on Loan to Partner is allowed at the agreed rate of interest and in the absence of agreement, it is allowed @ 10% p.a. |
Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A). Both Assertion (A) and Reason (R) are true, and Reason (R) is not the correct explanation of Assertion (A). Assertion (A) is true, but Reason (R) is False Both Assertion (A) and Reason (R) are false |
Both Assertion (A) and Reason (R) are false |
The correct answer is option 4- Both Assertion (A) and Reason (R) are false. Assertion (A): Interest on Loan to Partner is allowed at the agreed rate of interest and in the absence of agreement, it is allowed @ 10% p.a. THIS IS FALSE because in the absence of agreement interest is provided @ 6% p.a. not 10% p.a. Reason (R): In the absence of a Partnership Deed or oral agreement, interest on Loan to Partner is not allowed. THIS IS FALSE because whether there is agreement or not interest on partner's loan is provided as it is charge against profit not appropriation of profit. Thus, both statements are false. |
