In the absence of partnership agreement, a loan by a partner attracts interest at?

By: |Published on: Jan 10|Categories: Accounting WAEC| 0 comments

A. 20%
B. 5%
C. 10%
D. 15%

Correct Answer: Option B

B. 5%

Explanation

If no specific agreement is made, 5% interest 2 years on loans made by partners in excess of the ‘agreed capitals’.

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