Question

Riya, Rita, and Renu were partners in a firm. On 31\textsuperscript{st March, 2023, Renu retired. The amount payable to Renu \rupee2,17,000 was transferred to her loan account. Renu agreed to receive interest on this amount as per the provisions of 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:

Refer to the Indian Partnership Act, 1932, for standard rules in the absence of a partnership deed or specific agreements among partners.

Answer 1

The Correct Option is B

According to the provisions of the Indian Partnership Act, 1932, if no specific agreement is made, interest on a retiring partner’s loan is payable at the rate of 6\% p.a. unless otherwise agreed upon by the partners. Thus, the rate of interest payable to Renu is \(6\%\ \text{p.a.}\).