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In the Absence of Partnership Deed, Interest on a Loan of a Partner is Allowed : (1) at 8% per Annum (2) at 6% per Annum (3) No Interest is Allowed (4) at 12% per Annum - Accountancy

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Question

In the absence of Partnership Deed, interest on a loan of a partner is allowed :

(1) at 8% per annum
(2) at 6% per annum
(3) no interest is allowed
(4) at 12% per annum

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Solution

at 6% per annum

Interest on loan of a partner is allowed at the rate of 6% per annum in absence of Partnership Deed

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2014-2015 (March) All India Set 1
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