Multiple choice

In absence of partnership deed, the partners are entitled to_____% interest for the advances made by them to the firm.

  1. 12

  2. 6

  3. 0

  4. 9
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In the absence of partnership deed, no interest o capital is allowed to partners. However, they will be paid interest @ 6% p.a for any advances made by them to the firm. Hence, option (2) is correct.

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