Which of the following is provided even if there is no provision in the partnership deed and there are no profits?

Interest on partner's capital.

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Interest on partner's loan/advance.

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Interest on partner's drawings.

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Remuneration to a partner.

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Solution

The correct option is B Interest on partner's loan/advance.
Even if there is no provision in the partnership deed or there exists in no deed Interest on loans/advances will be charged @ 6% p.a. Loan or advances advanced by the partners to firm are treated as external liability and hence are paid even if there is no profit.

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Similar questions

In the absence of partnership deed, specify the rules relating to the following

(i) Sharing of profits and losses (ii) Interest on partner's capital

(iii) Interest on partner's drawings (iv) Interest on partner's loan

(v) Salary to a partner

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