Practicing Success
Practicing Success
CUET Preparation Today
In the absence of partnership deed, identify the rate of interest that should be charged on the drawings of a partner. |
6% 6% p.a. As decided by the partner, who had withdrawn money as drawing No interest is to be charged |
No interest is to be charged |
The correct answer is Option (4) → No interest is to be charged. Interest on drawings is the interest charged by the firm on the money withdrawn by the partners for their personal purpose. If there is no provision in the partnership deed relating to interest on drawings no interest will be charged by the firm. |
