Accounting for Partnership Firms – Fundamentals · Class 12 · CBSE · Commerce Accountancy
In the absence of a partnership deed, interest on a partner's loan advanced to the firm is allowed at what rate?
Practice question from Accounting for Partnership Firms – Fundamentals (Class 12 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
easy · MCQ · Q-25CF45
In the absence of a partnership deed, interest on a partner's loan advanced to the firm is allowed at what rate?
- A.6% per annumCorrect answer
- B.12% per annum
- C.10% per annum
- D.No interest is allowed
Solution
According to the Indian Partnership Act, 1932, if there is no partnership deed, interest on a partner's loan is allowed at the rate of per annum.
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