Assertion(A): Rahul a partner in the firm gave loan of Rs. 5,00,000 to the firm without an agreement as to rate of interest. Interest on Loan by Rahul is to be allowed @6%pa. Reason(R): In the absence of partnership deed, provision of the act 1932 apply. Thus interest on Loan to Partner should be charged at 6%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 false but Reason (R) is True Both Assertion (A) and Reason (R) are not correct. Show Answer

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Both assertion and reason are true and reason is the correct explanation of the assertion. Partners are paid interest on loan of partner @6% p.a if partnership deed does not have provision against it. In this case provisions of the partnership act 1932 are applied.