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If the deed does not mention interest rate on partner’s loan then what rate is generally applied?

Answer and explanation

Correct answer: Six percent per annum

Under the general rule partner’s loan carries six percent per annum interest. It is different from interest on capital.

Related tags

Partner LoanAbsence Of DeedInterest RulePartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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