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WAEC Financial Accounting 2007 Question 40

Question 40

Partnership Accounts

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

  1. A.20%
  2. B.15%
  3. C.10%
  4. D.5%.
Show the answer and explanation

Answer: D (5%.)

Explanation

The Partnership Act allows 5% a year on partners' loans.