CUET Preparation Today
Will the deceased partner get any interest on his capital up to his death when the final account is made to know the balance to be paid to him? |
Yes Yes, but rate of interest should be 6% p.a. Yes, if only partnership deed allowed Yes, but rate of interest should be less than 10% p.a. |
Yes, if only partnership deed allowed |
The correct answer is option 3- Yes, if only partnership deed allowed. Interest on Capital: No partner is entitled to claim any interest on the amount of capital contributed by him in the firm as a matter of right. However, interest can be allowed when it is expressly agreed to by the partners. Thus, no interest on capital is payable if the partnership deed is silent on the issue. A partnership deed is followed for any clause related to the settlement of account of any partner. If nothing is mentioned then the provision of the Indian Partnership Act,1932 followed. Thus, the deceased partner will get any interest on his capital up to his death, only if partnership deed allowed. |
