In the absence of partnership agreement, a loan by a partner attracts interest at
Question 1 Report
In the absence of partnership agreement, a loan by a partner attracts interest at
Answer Details
In the absence of a partnership agreement, the interest rate charged on a loan made by a partner to the partnership is determined by the Partnership Act, which specifies that such loans attract interest at a rate of 5% per annum. This means that if a partner lends money to the partnership, they are entitled to receive interest on the loan at a rate of 5% per annum, unless otherwise agreed in writing by the partners. Therefore, the correct option is 5%.
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