Question

On 1st January, 2023, Abhishek, a partner, advanced a loan of ₹ 3,00,000 to the firm. In the absence of a partnership agreement, the amount of interest on the loan for the year ending 31\textsuperscript{st} March, 2023 will be:
 

• A. ₹ 18,000
• B. ₹ 4,500
• C. ₹ 9,000
• D. No interest will be provided.

Hint:

In the absence of a partnership agreement, interest on partner's loans is always calculated at 6% per annum, regardless of other conditions.

Answer 1

The Correct Option is B

In the absence of a partnership agreement, interest on loans provided by a partner is charged at 6% per annum. The loan was advanced on 1st January, 2023, and the year ends on 31\textsuperscript{st} March, 2023, making the duration 3 months. \[ \text{Interest} = 3,00,000 \times \frac{6}{100} \times \frac{3}{12} = ₹ 4,500. \] Hence, the correct answer is (B).