Question

Riya, Rita and Renu were partners in a firm. On 31^st March, 2023 Renu retired. The amount payable to Renu ₹ 2,17,000 was transferred to her loan account. Renu agreed to receive interest on this amount as per the provisions of Partnership Act, 1932. The rate at which interest would be paid to Renu is ______.

Options

• 9% p.a.

• 6% p.a.

• 12% p.a.

• 10% p.a.

Answer 1

Riya, Rita and Renu were partners in a firm. On 31^st March, 2023 Renu retired. The amount payable to Renu ₹ 2,17,000 was transferred to her loan account. Renu agreed to receive interest on this amount as per the provisions of Partnership Act, 1932. The rate at which interest would be paid to Renu is 6% p.a.

Explanation:

1. According to the Indian Partnership Act, 1932, the default interest rate on a partner's loan is 6% per year if there is no agreement.
2. As no precise rate is specified, Renu will receive 6% p.a. interest on her loan of ₹ 2,17,000.