When there is no partnership deed prevails, the interest on loan of a partner to be paid @ 6%. [May 2018, 2 Marks]
Options
A
B
C
D
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Partnership and LLP AccountsQ-
12 | Partnership and LLP AccountsQuestion 5178 of 108
All Questions Correct Answer
✅ Option — Correct Option
All Options:
- A
- B
- C
- D
Detailed Solution & Explanation
True: When there is no partnership deed then the provisions of the Indian Partnership Act are
to be applied for settling the dispute. Interest on loan is payable @ 6% p.a. as per Indian
Partnership Act.
Key Concepts to Understand
More Questions from Partnership and LLP Accounts
Following are the details of Assets and Liabilities of Mr. Sarthak for the year ended 31 March, 2023 and 31 March, 2024: 31.03.2023 31.03.2024 Assets Buildings Furniture Inventory Sundry debtors Cash at bank Cash in hand Liabilities: Loans Sundry Creditors 2,00,000 75,000 1,05,000 68,000 72,500 2,400 1,50,000 58,400 ? ? 1,95,000 94,000 86,800 3,800 1,25,000 79,500 It was decided to depreciate Building by 5% p.a. and Furniture by 10% p.a. On 1st June, 2023 an additional capital of 40,000 was brought in the business. Proprietor has withdrawn @ ₹ 2,500 p.m. for meeting the family expenses. Prepare Statement of Affairs as on 31 March, 2023 and 31 March, 2024. Find the profit or loss earned by Mr. Sarthak for the year ended 31st March, 2024. [Jan. 2025, 5 Marks]
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