alleryWhere the partnership deed is silent, interest on partner's loan to the firm is allowed at
ANo interest
B5% p.a.
C6% p.a.
D9% p.a.
Answer & Solution
Correct answer: C. 6% p.a.
1. Section 13(d) provides 6% p.a. on partner loans (advances to firm) when the deed is silent.
2. This protects the lending partner without negotiation.
3. Interest on capital is NOT payable unless agreed; the loan rate is fixed by statute at 6%.
4. Hence (C) is correct.
_Source: Maharashtra Balbharati Std XII Book-Keeping & Accountancy, Ch 1 "Introduction to Partnership and Partnership Final Accounts", §1.2 ¶§1.2_
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