GCE Accounting 2023 Objective — Question 36

Which of the following rules is applicable in the absence of a partnership agreement? Interest is payable (a) on drawings at the rate of 5% per annum (b) on agreed capital contributed at 5% per annum (c) on any contribution in excess of agreed capital at 5% per annum (d) at 5% per annum on current account balances

• A. on drawings at the rate of 5% per annum
• B. on agreed capital contributed at 5% per annumCorrect
• C. on any contribution in excess of agreed capital at 5% per annum
• D. at 5% per annum on current account balances