JAMB - Accounts Principles Of Accounts (2025 - No. 26)
In the absence of a partnership agreement, additional capital contributions by partners attract interest of
10%
12%
15%
5%
Explanation
If there is no partnership agreement, the Partnership Act 1890 applies. The Act states that no interest is allowed on capital. However, partners may agree to pay interest, commonly at 5% per annum, but this is not legally required.
Comments (0)
