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GCE Accounting 2025 Objective — Question 42

Question 42 of 60 from the General Certificate of Education (GCE) Accounting 2025 Objective paper, with the correct answer and a full explanation.

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Where there are no partnership agreements, the Partnership Act of 1890 stipulates that

  • A. 5% interest shall be allowed on a partner's loan per annumCorrect
  • B. capital to be contributed by each partner
  • C. interest to be charged on drawings

Explanation

The Partnership Act of 1890 stipulates 5% interest per annum on a partner's loan, in the absence of any other agreement.

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