If partnership deed is silent, interest is payable at ______ on unpaid amount payable to the retiring partner.

(a) 10% p.a.
(b) 12% p.a.
(c) 6% p.a.
(d) Zero

Question

If partnership deed is silent, interest is payable at ______ on unpaid amount payable to the retiring partner.

(a) 10% p.a.
(b) 12% p.a.
(c) 6% p.a.
(d) Zero

Accepted Answer

>

> [!TLDR]
> For GSEB Class-12 Commerce, when the partnership deed is silent the retiring partner earns interest at 6% per annum on the amount that remains unpaid, so the correct option is (c).
>
> On retirement, the amount due to a retiring partner is often not paid immediately. Section 37 of the Indian Partnership Act, 1932 provides that where the deed does not specify a rate, the retiring (or deceased) partner is entitled to interest at 6% p.a. on the u …

Dr.	Retiring Partner's Capital Account	Cr.
Particulars	Amount (₹)	Particulars
To Revaluation A/c (loss)	xxx	By Balance b/d
To Goodwill A/c (if written off)	xxx	By Revaluation A/c (gain)
To Retiring Partner's Loan A/c	xxx	By General Reserve A/c
To Bank A/c (final payment)	xxx	By Profit & Loss A/c
		By Goodwill A/c (remaining partners)
		By Interest on Capital (if any)
Total	xxx	Total

Q.If partnership deed is silent, interest is payable at ______ on unpaid amount payable to the retiring partner.

Concept understanding — Partner Retirement Methods

Partner Retirement Methods – A First Look

What Does "Retirement of a Partner" Mean?

Why Does This Matter?

The Accounting Treatment – Step by Step

Step 1: Revalue Assets and Reassess Liabilities

Step 2: Adjust for Goodwill

Step 3: Transfer Reserves and Accumulated Profits

Step 4: Settle the Retiring Partner's Account

The Capital Account Format (as per NCERT)

Q.If partnership deed is silent, interest is payable at ______ on unpaid amount payable to the retiring partner.

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