Ramesh, a partner in the firm has advanced a loan of a Rs. 1,00,000 to the firm and has demanded on interest @ 9% per annum. The partnership deed is silent on the matter. How will you deal with it ?

Ans.        Since the Partnership deed is silent on payment of interest, the provisions of the Partnership Act, 1932 will apply.  Accordingly, Ramesh is entitled to interest @ 6% p.a.