When a partner advances a loan to the firm without any agreement regarding interest, as per Section 13(d) of the Indian Partnership Act, 1932, the partner is entitled to interest at the rate of 6% per annum.
Calculation of Interest on Amitabh's Loan:
Loan Amount = Rs. 50,000
Rate of Interest = 6% p.a. (as per Partnership Act)
Period = April 01, 2024 to March 31, 2025 = 12 months (1 year)
Using the formula: Interest = 100Principal×Rate×Time
Interest = 10050,000×6×1 = Rs. 3,000
The interest on capital mentioned in the question (@ 6% p.a.) is relevant only for calculating interest on partners' capital accounts, not for the loan. The loan is a separate liability of the firm to the partner and attracts interest as per the Partnership Act since no specific rate was agreed upon.
Correct Option: 4 (Rs. 3,000)