Question : In the absence of a partnership agreement, interest on partners' drawings is charged:
Option 1: @ 8% p.a.
Option 2: @ 9% p.a.
Option 3: @12% p.a.
Option 4: No interest is charged.
Correct Answer: No interest is charged.
Solution : Answer = No interest is charged. In the absence of a partnership deed, no interest will be charged on drawings made by the partners. This practice serves as a means to discourage excessive withdrawals, ensuring fairness in the distribution of profits and maintaining the financial stability of the partnership. Hence, the correct option is 4.
Question : A and B are Partners in a Partnership firm without any agreement. A has withdrawn Rs. 50,000 out of his capital as Drawings. Interest on Drawings may be charged from A by the firm.
Option 1: @ 5% p.a.
Option 2: @ 6% p.a.
Option 3: @ 6% per month
Option 4: No interest can be charged.
Question : In the absence of a partnership deed, Interest on a loan of a partner is allowed.
Option 1: @ 6% p.a.
Option 2: @12% p.a.
Option 3: No interest is allowed
Option 4: @ 8% p.a.
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