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If a partner gives a loan to the firm and the deed is silent on interest, the partner is entitled to interest on the loan at
ANo interest
B5 % per annum
C6 % per annum
D9 % per annum
Answer & Solution
Correct answer: C. 6 % per annum
Per the Act, a partner advancing a loan to the firm is entitled to 6% p.a. interest even when the deed is silent. This is treated as a charge against profit, not an appropriation.
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