CA Foundation Exam > CA Foundation Questions > Would interest on loan be allowed in the abse...
Start Learning for Free
Would interest on loan be allowed in the absence of any agreement or when partnership deed is silent?
- a)No interest allowed
- b)Allowed only if agreed y all the other partners
- c)Will be paid only when there are sufficient profits
- d)Allowed @ 6% p.a.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Would interest on loan be allowed in the absence of any agreement or w...
Interest on loan in the absence of any agreement or when partnership deed is silent
The Indian Partnership Act, 1932 governs the partnership firms in India. The act provides certain rules and regulations that govern the partnership firms. The partnership deed is an agreement between the partners which governs the partnership firm's operations.
In the absence of any agreement or when the partnership deed is silent, the following rules apply:
1. No interest allowed
By default, no interest is allowed on the loan given by any partner to the partnership firm. The partners cannot claim any interest on the loan amount given to the partnership firm.
2. Allowed only if agreed by all the other partners
If the partners agree to pay interest on the loan amount, it can be paid. However, the agreement should be unanimous, and all the partners should agree to it.
3. Will be paid only when there are sufficient profits
If the partnership firm is making sufficient profits, the partners can agree to pay interest on the loan amount. The interest will be paid only when there are sufficient profits.
4. Allowed @ 6% p.a.
If the partnership deed is silent on the interest rate, the partners can agree to pay interest @ 6% p.a. This is the default rate specified in the Indian Partnership Act, 1932.
Conclusion
In conclusion, if the partnership deed is silent on interest on the loan amount, the partners can agree to pay interest @ 6% p.a. The partners can also agree to pay interest if there are sufficient profits, or if all the partners unanimously agree to it.
The Indian Partnership Act, 1932 governs the partnership firms in India. The act provides certain rules and regulations that govern the partnership firms. The partnership deed is an agreement between the partners which governs the partnership firm's operations.
In the absence of any agreement or when the partnership deed is silent, the following rules apply:
1. No interest allowed
By default, no interest is allowed on the loan given by any partner to the partnership firm. The partners cannot claim any interest on the loan amount given to the partnership firm.
2. Allowed only if agreed by all the other partners
If the partners agree to pay interest on the loan amount, it can be paid. However, the agreement should be unanimous, and all the partners should agree to it.
3. Will be paid only when there are sufficient profits
If the partnership firm is making sufficient profits, the partners can agree to pay interest on the loan amount. The interest will be paid only when there are sufficient profits.
4. Allowed @ 6% p.a.
If the partnership deed is silent on the interest rate, the partners can agree to pay interest @ 6% p.a. This is the default rate specified in the Indian Partnership Act, 1932.
Conclusion
In conclusion, if the partnership deed is silent on interest on the loan amount, the partners can agree to pay interest @ 6% p.a. The partners can also agree to pay interest if there are sufficient profits, or if all the partners unanimously agree to it.
Free Test
FREE
| Start Free Test |
Community Answer
Would interest on loan be allowed in the absence of any agreement or w...
According to Indian Partnership Act 1932,
no int. will be allowed or charged for the capital and drawings
BUT if there is a loan irrespective of whether there is a specific rate or not, in the absence of the deed , will be provided @6%p.a.
no int. will be allowed or charged for the capital and drawings
BUT if there is a loan irrespective of whether there is a specific rate or not, in the absence of the deed , will be provided @6%p.a.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
Would interest on loan be allowed in the absence of any agreement or when partnership deed is silent?a)No interest allowedb)Allowed only if agreed y all the other partnersc)Will be paid only when there are sufficient profitsd)Allowed @ 6% p.a.Correct answer is option 'D'. Can you explain this answer?
Question Description
Would interest on loan be allowed in the absence of any agreement or when partnership deed is silent?a)No interest allowedb)Allowed only if agreed y all the other partnersc)Will be paid only when there are sufficient profitsd)Allowed @ 6% p.a.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Would interest on loan be allowed in the absence of any agreement or when partnership deed is silent?a)No interest allowedb)Allowed only if agreed y all the other partnersc)Will be paid only when there are sufficient profitsd)Allowed @ 6% p.a.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Would interest on loan be allowed in the absence of any agreement or when partnership deed is silent?a)No interest allowedb)Allowed only if agreed y all the other partnersc)Will be paid only when there are sufficient profitsd)Allowed @ 6% p.a.Correct answer is option 'D'. Can you explain this answer?.
Would interest on loan be allowed in the absence of any agreement or when partnership deed is silent?a)No interest allowedb)Allowed only if agreed y all the other partnersc)Will be paid only when there are sufficient profitsd)Allowed @ 6% p.a.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Would interest on loan be allowed in the absence of any agreement or when partnership deed is silent?a)No interest allowedb)Allowed only if agreed y all the other partnersc)Will be paid only when there are sufficient profitsd)Allowed @ 6% p.a.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Would interest on loan be allowed in the absence of any agreement or when partnership deed is silent?a)No interest allowedb)Allowed only if agreed y all the other partnersc)Will be paid only when there are sufficient profitsd)Allowed @ 6% p.a.Correct answer is option 'D'. Can you explain this answer?.
Solutions for Would interest on loan be allowed in the absence of any agreement or when partnership deed is silent?a)No interest allowedb)Allowed only if agreed y all the other partnersc)Will be paid only when there are sufficient profitsd)Allowed @ 6% p.a.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Would interest on loan be allowed in the absence of any agreement or when partnership deed is silent?a)No interest allowedb)Allowed only if agreed y all the other partnersc)Will be paid only when there are sufficient profitsd)Allowed @ 6% p.a.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Would interest on loan be allowed in the absence of any agreement or when partnership deed is silent?a)No interest allowedb)Allowed only if agreed y all the other partnersc)Will be paid only when there are sufficient profitsd)Allowed @ 6% p.a.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Would interest on loan be allowed in the absence of any agreement or when partnership deed is silent?a)No interest allowedb)Allowed only if agreed y all the other partnersc)Will be paid only when there are sufficient profitsd)Allowed @ 6% p.a.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Would interest on loan be allowed in the absence of any agreement or when partnership deed is silent?a)No interest allowedb)Allowed only if agreed y all the other partnersc)Will be paid only when there are sufficient profitsd)Allowed @ 6% p.a.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Would interest on loan be allowed in the absence of any agreement or when partnership deed is silent?a)No interest allowedb)Allowed only if agreed y all the other partnersc)Will be paid only when there are sufficient profitsd)Allowed @ 6% p.a.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup