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HomeMaharashtra HSC Class 12 (Commerce)accountancyIndian Partnership Act 1932 › If the deed is silent, interest on capital is

If the deed is silent, interest on capital is

ANot allowed
B12% p.a.
C6% p.a.
DEqual to bank rate
Answer & Solution
Correct answer: A. Not allowed
1. Interest on capital is a benefit; the statute does not assume it. 2. Unless the partnership deed expressly provides for it, it is NOT payable. 3. The same logic applies to salary and commission to partners. 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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