In the absence of any agreement interest on advances by a partner is __________.

allowed at 6 per cent p.a.

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not allowed at all

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allowed at time market rate of interest

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allowed at 7 per cent p.a.

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allowed at Bank Rate

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Solution

The correct option is A allowed at 6 per cent p.a.
In the absence of any agreement interest on advances by a partner is allowed at 6 percent p.a. and is allowed whether there is profit or no. Interest on loan is a charge and will be provided regardless of profits earned.

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In the absence of any agreement interest on advances by a partner is __________.

The correct option is A allowed at 6 per cent p.a. In the absence of any agreement interest on advances by a partner is allowed at 6 percent p.a. and is allowed whether there is profit or no. Interest on loan is a charge and will be provided regardless of profits earned.

The correct option is A allowed at 6 per cent p.a.
In the absence of any agreement interest on advances by a partner is allowed at 6 percent p.a. and is allowed whether there is profit or no. Interest on loan is a charge and will be provided regardless of profits earned.