[amp_mcq option1=”4% p.a.\/Annual” option2=”5% p.a.\/Annual” option3=”6% p.a.\/Annual” option4=”7.5% p.a.\/Annual” correct=”option1″]<\/p>\n
The correct answer is: A. 4% p.a.\/Annual<\/strong><\/p>\n In the absence of a partnership deed, the allowable rate of interest on a partner’s loan account is 4% p.a. This is because the Companies Act 2013, Section 58(2) states that “the interest payable on a loan made by a partner to the firm shall be at such rate as may be agreed between the partner and the firm, and, in the absence of any agreement, at such rate as may be determined by the Central Government.” The Central Government has not yet prescribed any rate of interest, so the default rate is 4% p.a.<\/p>\n Option B is incorrect because the Companies Act 2013 does not specify a rate of interest of 5% p.a.<\/p>\n Option C is incorrect because the Companies Act 2013 does not specify a rate of interest of 6% p.a.<\/p>\n Option D is incorrect because the Companies Act 2013 does not specify a rate of interest of 7.5% p.a.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”4% p.a.\/Annual” option2=”5% p.a.\/Annual” option3=”6% p.a.\/Annual” option4=”7.5% p.a.\/Annual” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-54714","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n