Jai and Shyam are partners in a firm with no partnership deed and sharing profits and losses equally. Jai withdrew Rs. 2,000 per month regularly on the first day of every month during the year 2024-2025 for personal expenses. Jai wants interest on drawings to be charged @ 5% p.a. Calculate Jai's interest on drawings.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Zero
Where there is no partnership deed, the Indian Partnership Act, 1932 supplies the terms, and on this point it is silent by design: no interest is charged on a partner’s drawings unless the deed provides for it. What Jai wants is beside the point; interest on drawings is a matter of agreement, not of right.
So the monthly Rs. 2,000, the 5% and the first-of-the-month timing are all there to be ignored. The interest is Zero.
NCERT Extract
