If any partner has advanced some money to the firm beyond the amount of his capital for the purpose of business, he shall be entitled to get an interest on the amount at the rate of _____ percent per annum.

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Solution

The correct option is D 6
Partnership comes into existence as a result of agreement among the partners. The partnership act does not require that the agreement must be in writing. There are various provisions affecting partnership accounts. Interest on Advances is one of the provisions affecting partnership accounts. If any partner has advanced some money to the firm beyond the amount of his capital for the purpose of business, he shall be entitled to get an interest on the amount at the rate of 6 % per annum.

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