Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Partnership

Question:

If the partnership deed is silent on interest on capital, then:

Options:

No interest on capital is payable

Interest on capital is only paid to partner contributing more capital

Interest on capital paid equally to all partners

Interest on capital is paid @6% p.a.

Correct Answer:

No interest on capital is payable

Explanation:

The correct answer is Option (1) → No interest on capital is payable