CUET Preparation Today
| In the absence of express agreement, interest @6% is provided on which of the following? |
On opening balance of partner's Capital account On closing balance of Partner's capital account On loan given by partners to the firm All of the above |
| On loan given by partners to the firm |
| If partnership deed is silent in respect of certain aspects, the relevant provisions of the Indian Partnership Act, 1932 become applicable. According to the Partnership Act, the partners share profits equally, no partner is entitled to remuneration, no interest on capital is allowed and no interest on drawings is charged. However, if any partner has given some loan to the firm, he is entitled to interest on such amount @ 6% per annum. |
