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The deed does not specify the rate of interest on partner loan. What is the rate under the general rule?

Answer and explanation

Correct answer: Six percent per annum

If the deed is silent, interest on partner loan is payable at six percent per annum. This is different from interest on capital.

Related tags

Partner LoanInterest RatePartnership ActPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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