JAMB - Accounts Principles Of Accounts (2024 - No. 53)

Where there is no partnership agreement, a partner who advances loan to the partnership is entitled to ____ Interest
2%
15%
10%
5%

Explanation

In the absence of a partnership agreement specifying otherwise, a partner who advances a loan to the partnership is typically entitled to interest at the rate prescribed by the laws of the relevant jurisdiction. While this can vary depending on the jurisdiction, a common default rate is 5%.

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