Question

One of the partner contributed Rs.30,000 in the firm-How much interest he will get on the capital contributed ________.

• A. Nil, Unless it is mentioned in partnership deed.
• B. 6% of 30,000
• C. 5% of 30,000
• D. Income of the above

Answer 1

The correct option is A Nil, Unless it is mentioned in partnership deed.

Partners usually introduce some amount time to time as the capital in firm and the only reaosn behind it is to expand the business.

Since the partner has introduced Rs30,000 as additonal capital and firms does not pays interest on such amounts. The only situation when interest has to be paid is the time when a loan has been taken by the firm from any of its partner.