MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Partnership Deed

If nothing is...

Question

If nothing is mentioned about the rate of interest on the loan in the partnership deed, we pay interest at the rate of per annum.

A

2%

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

4%

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

5%

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

6%

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D 6%
If a partner lends money to the business, he will be entitled to interest at all times. If there is a deed and it mentions a rate of interest, he will be allowed to that interest rate. In all other cases, it is 6 % per annum.

Suggest Corrections

thumbs-up

8

Similar questions

Q. If the Partnership Deed does not specify the rate of interest payable on loan by a partner, at what rate will the interest be paid? If not, why?

Q. In the absence of a partnership deed, the allowable rate of interest on a partners loan account will be:

Q. Mahesh and Charan have to clear their respective loans of Rs. 30030 each by paying in 2 equal annual installments. Mahesh pays at the rate of 20% per annum simple interest while Charan pays at the rate of 20% per annum compound interest. What is the sum of the amounts paid by both?

Q. Ajay borrows Rs.1500 from two money-lenders. He pays interest at the rate of 12% per annum for one loan and at the rate of 14% per annum for the other. The total interest he pays for the entire year is Rs. 186. How much does he borrow at the rate of 12%?

Q. Amit took a loan of ₹ 8000 from the bank for 1 year at an interest rate of 20% per annum. Calculate the amount he has to pay to the bank at the end of this period if the interest rate is compounded quarterly.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Analysing Capital Accounts

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Partnership Deed

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon