Accountancy Part AAccounting for Partnership

Ravi, one of the partners, provided ₹1,00,000 loan to the firm. In th…

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.

NCERT (2026-27 edition):
Provisions of Partnership Act Relevant for Accounting – “… (d) Interest on Loan: If any partner has advanced loan to the firm for the purpose of business, he/she shall be entitled to get an interest on the loan amount at the rate of 6 per cent per annum.”