Question : If provided in deed, interest on capital is provided to partners only out of:

Option 1: Accumulated profits

Option 2: Reserves

Option 3: Profit of current year

Option 4: Goodwill

Question : The Partnership Deed is silent on the rate of interest to be paid on the amount due to the heirs of the deceased partner. At what rate interest on the outstanding amount shall be payable?

Option 1: At the rate at which the banks grant loan.

Option 2: At the rate of interest provided in the Partnership Act, 1932.

Option 3: At the rate of interest demanded by the heirs of the deceased partner.

Option 4: 12% PA

Question : In the absence of partnership deed, the following rule will apply:

Option 1: No interest on capital 

Option 2: Profit sharing in capital ratio

Option 3: Profit based salary to working partner 

Option 4: 9% Interest on drawing

Question : Interest on capital up to the date of his death/ if allowed by the Partnership Deed.  Will be -------- to his capital account.

Option 1: Debited

Option 2: Credited

Option 3: Either 1 and 2 

Option 4: None of the above