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The deed says interest is payable on the amount due to a retiring partner but no rate is given. What rate is generally applied by law?

Answer and explanation

Correct answer: Six percent per annum

Amount due to a retiring partner generally carries six percent per annum when no rate is stated. Treat it like a liability.

Related tags

Retiring PartnerAmount DueInterest RatePartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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