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easyMCQCUET Accountancy 2025 30 May Shift 22026Accountancy
1 mark

If the partnership deed is silent on interest on capital, then:

  1. A
    No interest on capital is payable
  2. B
    Interest on capital is only paid to partner contributing more capital
  3. C
    Interest on capital paid equally to all partners
  4. D
    Interest on capital is paid @6% p.a.

Solution & Step-by-step Explanation

According to the provisions of the Indian Partnership Act, 1932, when the partnership deed is completely silent regarding the payment of interest on capital, no interest on capital is allowed or payable to any partner, regardless of their capital contribution ratio.

Practice this question

Try it yourself before checking the explanation above.

If the partnership deed is silent on interest on capital, then:
A
No interest on capital is payable
B
Interest on capital is only paid to partner contributing more capital
C
Interest on capital paid equally to all partners
D
Interest on capital is paid @6% p.a.

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PartnershipAccountingAbsence of Partnership Deed

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