Accountancy Part AAccounting for Partnership

If the partnership deed is silent, at what rate, the interest would b…

If the partnership deed is silent, at what rate, the interest would be charged on the drawings made by the partner:

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → 0%

NCERT (2026-27 edition):
Provisions of Partnership Act Relevant for Accounting – “… (c) Interest on Drawings: No interest is to be charged on the drawings made by the partners, if there is no mention in the Deed.”