5%
6%
9%
0%
Answer is Wrong!
Answer is Right!
The correct answer is A. 5%.
According to the Indian Partnership Act, 1932, Section 18, in the absence of an agreement, interest to be allowed to
the partners on their capital will be at the rate of 5% per annum.Option B is incorrect
because the rate of interest is not 6%.Option C is incorrect because the rate of interest is not 9%.
Option D is incorrect because the rate of interest is not 0%.