Question

on 1st January 2019 ,a partner advanced a loan of₹100000 to the firm . In the absence of agreement interest on loan on 31st March,2019 will be:
A: Nil
B: 1500
C: 3000
D:6000​

Answer 1

Answer:

B(1500)

int.on loan = 100000×3/12×6/100 = 1500

Explanation:

from Jan to march it's 3 months

no interest is given so it is 6% p.a

Answer 2

GIVEN:  Loan given to firm on 1st January is 1,00,000

TO FIND:  Interest on loan on 31st March

SOLUTION :

• Partner has given a loan to the firm of  1,00,000 on  1st January 2019.

• A partnership agreement is absent, meaning that they have not formed any agreement before entering into a partnership.

• When a partnership agreement is absent, partners are paid everything according to the Indian Partnership Act 1932.

• They receive each and everything as mentioned in the act.

• According to Indian Partnership Act 1932, if a partner has provided the loan to the firm then they will receive interest @ 6% p.a.

• As the loan is provided in January then we have to pay interest for three months.

Interest on Loan = 1,00,000 × $\frac{6}{100}$ × $\frac{3}{12}$

                             = 1,500

Interest in the drawing is 1,500, option B is correct.