There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.
Assertion (A): A partner gives a loan of ₹50000 to a partnership firm without any agreement and got interest of ₹3000.
Reason (R): In absence of agreement, interest on the partners loan is provided @ 6% p.a.
Answer & explanation
Correct answer: option 1
The correct answer is option 1- Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
Assertion (A): A partner gives a loan of ₹50000 to a partnership firm without any agreement and got interest of ₹3000. This is true. When a partner lends money to a partnership firm without a specific agreement regarding the interest rate, the interest on the partner's loan is provided at a rate determined by law which is 6% per annum.
Reason (R): In absence of agreement, interest on the partners loan is provided @ 6% p.a. This is true. Interest on partners loan is a charge against profits. It is provided irrespective of profits or loss. It will also be provided in the absence of Partnership Deed @ 6% per annum. Interest on loan = 50000*6/100= 3000.
* Assertion stated that interest is provided for ₹3,000. Reason explains reason why it is provided ₹3,000 as in the absence of agreement interest is 6% p.a.