Question

State Whether the following Statement is True or False:

If the partnership deed is silent about the rate, interest on partner's loan is to be given @ 12% p.a.

Answer 1

The statement is false.

Explanation:

If the partnership deed is silent about the rate of interest on a partner's loan, the partner is entitled to interest at 6% per annum, not 12% per annum, under the Indian Partnership Act, 1932.