If a partner advances a loan to the firm and the partnership deed is silent, the interest on the loan is payable at: MCQ with Answer and Explanation

If a partner advances a loan to the firm and the partnership deed is silent, the interest on the loan is payable at:
A. 6% p.a.
B. 5% p.a.
C. 12% p.a.
D. Bank rate
Answer: Option A
Solution (By JKSSB Mock Tests)
The Indian Partnership Act stipulates that partners are entitled to 6% p.a. interest on any advances or loans given to the firm beyond their capital.

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Practice More Accountancy and Book Keeping Questions

Question #1
A company's profit after tax is ₹2,00,000. Preference dividend ₹20,000. Transfer to general reserve ₹30,000. Profit available for equity dividend is:
A. ₹2,20,000
B. ₹1,80,000
C. ₹1,50,000
D. ₹2,00,000

Correct Answer: Option C


Explanation:
Profit after preference dividend and transfer to reserve = 2,00,000 - 20,000 - 30,000 = ₹1,50,000.

Question #2
Under Ind AS 102, if a share-based payment transaction is settled in cash (e.g., Stock Appreciation Rights), how is it measured?
A. At the fair value of the liability at the grant date, not subsequently remeasured
B. At the intrinsic value of the equity instruments at the vesting date
C. At the fair value of the equity instruments at the grant date
D. At the fair value of the liability at each reporting date and at the date of settlement

Correct Answer: Option D


Explanation:
Ind AS 102 requires cash-settled share-based payments to be measured at the fair value of the liability, which must be remeasured at the end of each reporting period and at the date of settlement until it is paid.

Question #3
The 'Sabka Vishwas' scheme for indirect taxes was for:
A. Income tax disputes
B. Resolution of legacy disputes under excise and service tax
C. GST disputes
D. Customs only

Correct Answer: Option B


Explanation:
It was a dispute resolution scheme for pre-GST indirect tax matters.