Accountancy Part AAccounting for Partnership

If the partnership deed is silent about the interest rate on partner'…

If the partnership deed is silent about the interest rate on partner's loan, interest on the loan is to be given at _________.

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → 6% per annum

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.”