Practicing Success

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.