Question

According to Section $37$ of the Indian Partnership Act, 1932, the interest payable to the representative of deceased partner on the amount left by him will be ______________ .

• A. $6\%p.a$
• B. $10\%p.a$
• C. The Bank Rate
• D. None of these

Answer 1

The correct option is A $6\%p.a$

Generally, partners are not entitled to get any interest on the capital that they invest .but when they agree to give interest, then such interest would be paid from the capital. They are also entitled to 6%interest on the advances made towards the business of the firm.

Deceased partner's or his Legal representative's share in subsequent profits of the firm is the amount that is attributable to the use of his share of the property of the firm. Alternatively, he may also opt to receive interest at the rate of 6 percent per annum.