CUET Preparation Today
If the partnership deed is silent on interest on capital, then: |
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. |
No interest on capital is payable |
The correct answer is Option (1) → No interest on capital is payable According to the rules stipulated in the Partnership Act (e.g., Indian Partnership Act, 1932) regarding matters where the partnership deed is silent, no interest on capital is to be allowed to any partner. The key rules are:
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