CUET Preparation Today
There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the codes provided below- Assertion: Interest on Partner's loan is allowed at the agreed rate of interest and in the absence of agreement, it is allowed @ 8%. |
Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A. Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A. Assertion (A) is true but Reasoning (R) is not correct. Both Assertion and Reason are incorrect |
Both Assertion and Reason are incorrect |
The correct answer is option 4- Both A and R are incorrect. Assertion: Interest on Partner's loan is allowed at the agreed rate of interest and in the absence of agreement, it is allowed @ 8%. This is false as interest rate is 6% p.a. not 8% p.a. Reasoning: In the absence of Partnership Deed, interest on Partner's loan is not allowed. This is false as it is allowed whether there is partnership deed or not.
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. Thus, both assertion and reason is false. |
