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A partner gave a loan of rupees twenty thousand to the firm and the deed is silent about interest rate. Under the general rule, what is the interest rate on loan?

Answer and explanation

Correct answer: Six percent per annum

If the deed is silent, partner's loan carries interest at six percent per annum. Keep it separate from interest on capital.

Related tags

Partner LoanInterest RateSilent DeedPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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