Ravi, one of the partners, provided ₹1,00,000 loan to the firm. In the absence of partnership deed, interest on partner's loan is allowed @........?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- 6% p.a.
In the absence of partnership deed, interest on partner's loan is allowed @ 6% p.a. to Ravi.
If a partner has provided a loan to the partnership for business purposes, they are entitled to receive interest on the loan amount at a rate of 6 percent per annum in the absence of any agreement.