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Assertion (A): Bharat, a partner in the firm gave a loan of ₹ 5,00,000 to the firm without an agreement as to the rate of interest. At the year’s end, the remaining partners agreed to allow interest on Loan by Bharat @ 8% p.a.

Reason (R): In the absence of the Partnership Deed, provisions of the Partnership Act, 1932 apply. Thus, Interest on the Loan to the Partner should be charged @ 6% p.a. and not @ 8% p.a.




In the context of the above two statements, which of the following is correct?

In the context of the above two statements, which of the following is correct?

a) Assertion (A) and Reason (R) are correct but the Reason (R) is not the correct explanation of Assertion (A).

b) Both Assertion (a) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

c) Assertion (A) is correct but the Reason (R) is not correct.

d) Assertion (A) is not correct but the Reason (R) is correct.

Anurag Pathak Changed status to publish April 15, 2023
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