Question

If the partnership deed does not specify the rate of interest payable on loan by a partner at what rate will the interest be paid?

Answer 1

Answer:

If the Partnership Deed does not specify the rate of interest payable on loan by a partner, the rate at which interest on loan will be paid is 6 percent on any loan advanced by the partner to the firm. Interest on loan will be paid to the partners even if the firm incurs a loss.

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Answer 2

If the Partnership Deed does not specify the rate of interest payable on loan by a partner, the rate at which interest on loan will be paid is 6 percent on any loan advanced by the partner to the firm. Interest on loan will be paid to the partners even if the firm incurs a loss.