Multiple choice

If any partner has advanced some money to the firm beyond the amount of his capital for the purpose of business, he shall be entitled to get an interest on the amount at the rate of _____ percent per annum.

  1. 3

  2. 4

  3. 5

  4. 6
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

According to the Indian Partnership Act, 1932, if a partner advances money to the firm beyond their capital, they are entitled to interest at the rate of 6 percent per annum unless otherwise agreed.

AI explanation

Under the Indian Partnership Act of 1932, if a partner advances money to the firm beyond their agreed capital, they are entitled to interest. In the absence of a specific agreement, this interest is set at 6 percent per annum. The interest is payable even if the firm has not earned profits. The correct rate is 6 percent.

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