Question:
Kanha, Resham, and Nisha were partners in a firm. Nisha had given a loan of \rupee 1,00,000 to the firm @ 10\% p.a. The accountant of the firm is emphasizing that interest on loan will be paid @ 6\% p.a. At what rate the interest on loan will be paid to Nisha?
Kanha, Resham, and Nisha were partners in a firm. Nisha had given a loan of \rupee 1,00,000 to the firm @ 10\% p.a. The accountant of the firm is emphasizing that interest on loan will be paid @ 6\% p.a. At what rate the interest on loan will be paid to Nisha?
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Remember, under the Indian Partnership Act, 1932, the default rate of interest on a partner's loan is 6\% p.a. in the absence of an agreement.
Updated On: Jan 28, 2025
- 6\% p.a.
- 10\% p.a.
- 8\% p.a.
- No interest on loan will be paid.
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The Correct Option is A
Solution and Explanation
As per the Indian Partnership Act, 1932, if a partner provides a loan to the firm and the deed does not specify the rate of interest, interest is payable at 6\% p.a. Therefore, Nisha will be paid interest at 6\% p.a., not 10\%.
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