Assertion (A): Avinash, a partner in the firm gave loan of ₹ 5,00,000 to the firm without an agreement as to rate of interest. Interest on Loan by Avinash is to be allowed @ 6% p.a.
Ans – c) In the absence of the Partnership Deed, the Indian Partnership Act 1932 applies, Thus, Interest on Avinash’s loan to the firm would be allowed @ 6% p.a. Thus Assertion (A) is correct. Reason (R) talks about providing…