Which of the following rules is applicable in the absence of a partnership agreement? Interest...
FINANCIAL
WAEC 2023
Which of the following rules is applicable in the absence of a partnership agreement? Interest is payable
- A. on drawings at the rate of 5% per annum
- B. on any contribution in excess of agreed capital at 5% per annum
- C. at 5% per annum on the current account balances
- D. on agreed capital contributed at 5% per annum
Correct Answer: B. on any contribution in excess of agreed capital at 5% per annum
Explanation
If no specific agreement is made by the partners, 5% interest a year on loans made by partners in excess of the agreed capitals.
Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *