JAMB Commerce 2020 Objective — Question 16

Question 16 of 40 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2020 Objective paper, with the correct answer and a full explanation.

16. In a partnership where there is no deed

A. A. Interest on capital is 5%
B. B. Interest on drawing is 5%
C. C. Interest on partner's loan is 5%Correct
D. D. Interest of profit is 5%

Explanation

When the partners do not have agreement, Partnership Act 1890 specifies that 5% interest is on partners' loan.

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