In the absence of a partnership agreement, a loan given to the partnership by a partner attracts interest of
- 7 \(\frac{1} {2}\) %
-
5%
- 15%
- 10%
The correct answer is: B
Explanation
Where there is no agreement betwen the partners, the following must applied:
- there is no interest on capital
- no salary for partners acting in the business
- no interest to be charged on drawings
- profit and loss are to be shared equally
- 5% interest a year on loans made by partners in excess of the agreed capitals
- no partners may introduce a new person without the consent of all existing partners