Question : A and B are Partners in a Partnership firm without any agreement. A has withdrawn Rs. 50,000 out of his capital as Drawings. Interest on Drawings may be charged from A by the firm.
Option 1: @ 5% p.a.
Option 2: @ 6% p.a.
Option 3: @ 6% per month
Option 4: No interest can be charged.
Answer (1)
17th Jan, 2024
Correct Answer: No interest can be charged.
Solution :
Answer =
No interest can be charged
.
If Drawings are made out of Capital, then no interest on Drawings is Charged. This is because, without a specific provision in the partnership deed, interest on drawings cannot be enforced or charged from any partner.
Hence, the correct option is 4.
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