Practicing Success
In the absence of partnership deed, which of the following statement is correct? |
Interest on partners' Capital will be allowed @ 6% p.a. Interest on partners' Loan is to be given @ 6% p.a. Profits are shared in the ratio of Capital Interest on Drawing is to be charged @ 6% p.a. |
Interest on partners' Loan is to be given @ 6% p.a. |
The correct answer is Option (2) → Interest on partners' Loan is to be given @ 6% p.a. If there is no clause in the partnership deed of the partnership firm then the provisions of the Partnership Act, 1932 will be applicable. Some of the provisions are: |