[Solved] Where a partner is entitled to interest on the capital subscribed such interest shall be payable.

Q.	Where a partner is entitled to interest on the capital subscribed such interest shall be payable.
A.	Only out of profits
B.	Out of capital in case of loss
C.	Out of borrowings
D.	Out of sale of partnership assets
Answer» A. Only out of profits

2.2k

Do you find this helpful?

View all MCQs in

Fundamentals of Laws and Ethics

Discussion

No comments yet

Related MCQs

On attaining majority when the minor partner elects not to become a partner, his share is not liable for any acts of the firm done —
After a firm is dissolved, every partner or his representative may restrain any other partner or his representative from carrying on similar business in the firm's name or by using firm's property for own benefit, until:
Identify the incorrect statements: (1) When a firm is constituted for a fixed duration it cannot be dissolved before the expiry of that duration. (2) A partnership at will can be dissolved by the wish of even a single partner. (3) When a partner of a firm becomes lunatic, the firm dissolves automatically. (4) Even after dissolution, partners of a firm continue to be liable for acts of the firm until the affairs of the firm are finally wound up. Code:
Where a partnership contract is rescinded on grounds of fraud or misrepresentation, the party entitled to rescind, is also entitled to rank, in respect of any payment made by him for the firm's debts as a:
In a contract of debt when a sum is expressed to be payable on a certain date and a further sum is stipulated to be payable in the event of default, then latter sum is by way of
According to section 31 of the Act, subject to the contract between the partners and to the provisions of section 30, no person shall be introduced as a partner into a firm:
After the registration of a firm, if a partner retires, such a change in the constitution of the firm requires:
Notice to a partner operates as notice to the firm. For such purpose, notice may be given to:
Under Section 36 of this Act an outgoing partner may carry on business competing with that of the firm and he may advertise such business, but, subject to contract to the contrary he may not
Agreement in restraint of trade is void. But if an outgoing partner agrees with the firm that he will not carry on any competing business, such an agreement will be valid if: