Question

Riya, Rita, and Renu were partners in a firm. On 31^st March, 2023, Renu retired. The amount payable to Renu ₹2,17,000 was transferred to her loan account. Renu agreed to receive interest on this amount as per the provisions of the Partnership Act, 1932. The rate at which interest would be paid to Renu is:

• A. 9 % p.a.
• B. 6 % p.a.
• C. 12 % p.a.
• D. 10 % p.a.

Hint:

Section 37 of the Indian Partnership Act, 1932, specifies that interest on the amount due to a retiring partner shall be 6\% p.a. if no agreement specifies a different rate.

Answer 1

The Correct Option is B

As per Section 37 of the Indian Partnership Act, 1932, the interest on the amount due to a retiring partner is payable at the rate of 6 % per annum, unless otherwise agreed upon by the partners.