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In the Absence of Partnership Agreement, Interest on Drawings of Partners is Charged : - Accountancy

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Question

In the absence of partnership agreement, interest on drawings of partners is charged :
(1) at 6% per annum
(2) at 9% per annum
(3) at 12% per annum
(4) no interest is charged

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Solution

no interest is charged

Interest on drawings is not charged from any partners in absence of Partnership Deed.

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2014-2015 (March) Foreign Set 1
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