Accountancy Part AAccounting for Partnership

If any partner has advanced loan to the firm for the purpose of busin…

If any partner has advanced loan to the firm for the purpose of business, he/she shall be entitled to get an interest on the loan amount at the rate of ………. % per annum.

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → 6 %

NCERT (2026-27 edition):
Provisions of Partnership Act Relevant for Accounting – “… (d) Interest on Loan: If any partner has advanced loan to the firm for the purpose of business, he/she shall be entitled to get an interest on the loan amount at the rate of 6 per cent per annum.”