Which of the following rule is NOT appli

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Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:

Which of the following rule is NOT applicable in the absence of a partnership deed?

Options:

Profit and Loss shall be shared equally

No Interest is allowed in case of a loan by a partner to the firm

No Salary to partners

No Interest on Drawings will be charged

Correct Answer:

No Interest is allowed in case of a loan by a partner to the firm

Explanation:

In the absence of any agreement interest on loan by a partner is allowed at 6 percent p.a.