Charu and Chavi are partners in partnership firm. They do not have any partnership deed. Charu demands interest on the loan of ₹ 50000 advanced by her at the market rate of interest, i.e., @12% p.a. but Chavi does not agree. How will the dispute be settled?
Answer & explanation
Correct answer: option 1
Interest on the partner's loan is payable @ 6% p.a. if there is no partnership deed.
Therefore, Charu will get interest of ₹ 3000 as interest (50000*6/100).