2
Question
Interest on capital will be paid to the partners if provided for in the agreement but only from following _______________.
Interest on capital will be paid to the partners if provided for in the agreement but only from following _______________.
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Solution
The correct option is A Profits
Interest on Capital: If the partnership deed is silent on interest on partner's capital, then according to the Partnership Act of 1932, no interest on capital should be given to the partners of the firm. However, interest on capital is given only out of the profits, if mutually agreed by all the partners.
Interest on Capital: If the partnership deed is silent on interest on partner's capital, then according to the Partnership Act of 1932, no interest on capital should be given to the partners of the firm. However, interest on capital is given only out of the profits, if mutually agreed by all the partners.
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