What will be the rate of interest on partner's loan, if partnership deed is silent?

6% p.a.

The correct answer is option 1- 6% p.a.

Interest is given at the rate of 6% p.a.

Provisions of Partnership Act 1932 applicable to accounting, 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. It is charged against profit and given to partner whether firm earns profit or not.