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Question
A and B are partners in a partnership firm without any agreement. A has withdrawn ₹ 50,000 out of his capital as drawings. Interest on drawings may be charged from A by the firm:
Options
@ 5% Per Annum
@ 6% Per Annum
@ 6% Per Month
No interest can be charged.
MCQ
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Solution
No interest can be charged.
Explanation:
In the absence of a partnership agreement, the Indian Partnership Act, 1932, applies. According to its provisions:
No interest is charged on drawings unless specifically mentioned in the partnership deed. So, if A has withdrawn ₹ 50,000 from the firm and there is no agreement, the firm cannot charge any interest on the drawings.
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