On 1st January, 2023, Abhishek, a partner, advanced a loan of ₹ 3,00,000 to the firm. In the absence of a partnership agreement, the amount of interest on the loan for the year ending 31\textsuperscript{st} March, 2023 will be:
On 1st January, 2023, Abhishek, a partner, advanced a loan of ₹ 3,00,000 to the firm. In the absence of a partnership agreement, the amount of interest on the loan for the year ending 31\textsuperscript{st} March, 2023 will be:
Show Hint
- ₹ 18,000
- ₹ 4,500
- ₹ 9,000
- No interest will be provided.
The Correct Option is B
Solution and Explanation
In the absence of a partnership agreement, interest on loans provided by a partner is charged at 6% per annum. The loan was advanced on 1st January, 2023, and the year ends on 31\textsuperscript{st} March, 2023, making the duration 3 months. \[ \text{Interest} = 3,00,000 \times \frac{6}{100} \times \frac{3}{12} = ₹ 4,500. \] Hence, the correct answer is (B).
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