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 A has withdrawn Rs. 50,000 out of his capital as Drawings.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.
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.
Question : In the absence of a partnership agreement, interest on partners' drawings is charged:
Question : C and D are partners. C draws a fixed amount at the beginning of every month. Interest on drawings is charged @ 10% p.a. At the end of the year, interest on C's drawings amounts to Rs 2,860. Drawings of C were:
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile