Question

In the absence of partnership deed, a partner is entitled to an interest on the amount of additional capital advanced by him to the firm at a rate of ______.

Options

• entitled for 6% p.a. on their additional capital, only when there are profits

• entitled for 10% p.a. on their additional capital

• entitled for 12% p.a. on their additional capital

• not entitled for any interest on their additional capitals.

Answer 1

In the absence of partnership deed, a partner is entitled to an interest on the amount of additional capital advanced by him to the firm at a rate of not entitled for any interest on their additional capitals.