CA Foundation Exam > CA Foundation Questions > If there is no partnership deed then interest...
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If there is no partnership deed then interest on capital will be charged at ……….p.a.
- a)6%
- b)8%
- c)9%
- d)Nil
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
If there is no partnership deed then interest on capital will be charg...
As If the partnership deed is not there then according to the partnership act 1932 uhh don't need to pay the interest
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If there is no partnership deed then interest on capital will be charg...
Interest on Capital in the absence of a Partnership Deed:
Interest on capital in the absence of a partnership deed is governed by the Indian Partnership Act, 1932. According to the Act, if there is no partnership deed specifying the rate of interest on capital, the partners are not entitled to any interest on their capital.
Explanation:
If there is no partnership deed, the partners are considered to have equal rights and obligations in the partnership. This means that they share profits and losses equally and are not entitled to any interest on their capital.
Implications:
- In the absence of a partnership deed, partners cannot claim interest on their capital.
- Partners will have to rely on the profits generated by the business for their returns, rather than receiving interest on their invested capital.
Conclusion:
In conclusion, if there is no partnership deed in place, interest on capital will not be charged to the partners. It is always advisable for partners to have a written partnership deed outlining the terms and conditions of their partnership to avoid any misunderstandings or disputes in the future.
Interest on capital in the absence of a partnership deed is governed by the Indian Partnership Act, 1932. According to the Act, if there is no partnership deed specifying the rate of interest on capital, the partners are not entitled to any interest on their capital.
Explanation:
If there is no partnership deed, the partners are considered to have equal rights and obligations in the partnership. This means that they share profits and losses equally and are not entitled to any interest on their capital.
Implications:
- In the absence of a partnership deed, partners cannot claim interest on their capital.
- Partners will have to rely on the profits generated by the business for their returns, rather than receiving interest on their invested capital.
Conclusion:
In conclusion, if there is no partnership deed in place, interest on capital will not be charged to the partners. It is always advisable for partners to have a written partnership deed outlining the terms and conditions of their partnership to avoid any misunderstandings or disputes in the future.
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If there is no partnership deed then interest on capital will be charged at ……….p.a.a)6%b)8%c)9%d)NilCorrect answer is option 'D'. Can you explain this answer?
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If there is no partnership deed then interest on capital will be charged at ……….p.a.a)6%b)8%c)9%d)NilCorrect 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 If there is no partnership deed then interest on capital will be charged at ……….p.a.a)6%b)8%c)9%d)NilCorrect 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 If there is no partnership deed then interest on capital will be charged at ……….p.a.a)6%b)8%c)9%d)NilCorrect answer is option 'D'. Can you explain this answer?.
If there is no partnership deed then interest on capital will be charged at ……….p.a.a)6%b)8%c)9%d)NilCorrect 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 If there is no partnership deed then interest on capital will be charged at ……….p.a.a)6%b)8%c)9%d)NilCorrect 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 If there is no partnership deed then interest on capital will be charged at ……….p.a.a)6%b)8%c)9%d)NilCorrect answer is option 'D'. Can you explain this answer?.
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