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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%

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B

4%

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C

5%

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D

6%

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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.

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