If interest on drawings is not mentioned in the deed what will happen in partners capital or current account?

Correct answer: No interest will be debited

Direct answer: Option A, no interest will be debited. Interest on drawings is not an automatic charge in every partnership. It must be authorised by the partnership deed or by an applicable agreement or rule. Step by step: drawings mean amounts withdrawn by a partner for personal use; interest on drawings is compensation to the firm for the use of its money; such compensation can be recorded only when there is a valid provision. If the deed is silent, no interest on drawings is calculated, so nothing is debited to the partner’s capital or current account. Option A is correct. Option B, six percent, has no general automatic application here. Option C, profit ratio, is not the basis for deciding whether interest exists. Option D, capital ratio, is also irrelevant. The important issue is the deed, not a ratio. Memory cue: deed silent means no interest on drawings.