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easyMCQCUET Accountancy 2025 2 June Shift 22026CUET Accountancy
1 mark

In the absolute absence of a valid partnership deed, interest on drawings is charged at what rate?

  1. A
  2. B
    Nil
  3. C
    At the prevailing market rate.
  4. D

Solution & Step-by-step Explanation

Provisions of the Indian Partnership Act, 1932 mandate that if a written or oral partnership agreement does not explicitly authorize charging interest on drawings, no interest can be charged from any partner. Thus, the rate is Nil.

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In the absolute absence of a valid partnership deed, interest on drawings is charged at what rate?
A
B
Nil
C
At the prevailing market rate.
D

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