If the deed is silent, what is the rule for interest on capital contributed by partners?

Correct answer: Not payable

Direct answer: Option A, not payable. A partnership deed is the agreement that states the partners’ special rights, duties and financial arrangements. Interest on capital is not automatically available merely because a partner has contributed money. Step by step: partners introduce capital; the deed is checked for an interest-on-capital clause; if the deed provides it, interest may be calculated according to the stated rate and conditions; if the deed is silent, no such interest is allowed under the usual Partnership Act rule. Option A is correct because silence means there is no contractual basis for paying interest on capital. Option B, always six percent, is wrong because six percent is not a general rule for interest on capital in a silent deed; a rate would have to be provided by the agreement or applicable law. Option C, always bank rate, is wrong because the bank rate does not automatically determine partners’ capital interest. Option D, profit equal to capital, is wrong because capital and profit are different concepts, and profit is distributed according to the agreed ratio or statutory rule, not as an amount equal to capital. A careful student should also note that if interest is properly provided but profit is insufficient, textbook rules may impose further conditions; that does not change the present silent-deed answer. Memory cue: no clause, no interest on capital.