Question

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?

Answer 1

If the Partnership Deed does not specify the rate of interest payable on loan by a partner, the rate at which interest on loan will be paid is 6 percent on any loan advanced by the partner to the firm. Interest on loan will be paid to the partners even if the firm incurs a loss.