A-LevelAccountingPreparation of financial statements9706/12 · Feb/Mar 2024 · Q161 Mark
Which provision of the Partnership Act 1890 applies when there is no partnership agreement?
APartners receive 5% interest per annum on their capital contributions.
BPartners are charged 5% interest per annum on their drawings.
CPartners receive interest of 5% per annum on loans to the partnership.
DPartners are entitled to equal amounts of salary.
✓ Correct answer
C: Partners receive interest of 5% per annum on loans to the partnership.
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