Assertion (A): In the absence of a partnership deed, partners are entitled to interest on capital at 6% p.a. Reason (R): The Indian Partnership Act, 1932 allows interest on capital only if there is an agreement. Choose the correct option:
A. Both A and R are true but R is not the correct explanation of A.
B. A is false but R is true.
C. Both A and R are true and R is the correct explanation of A.
D. A is true but R is false.
Answer: Option B
Solution (By JKSSB Mock Tests)
A is false because no interest on capital is allowed without agreement. R is true.
No comments yet. Be the first to start the discussion!