In the absence of a partnership agreement, additional capital contributions by partners attract interest of
A. 5% B. 10% C. 12% D. 15%
Correct Answer: A
Explanation
In the Absent of an agreement, the partners will share profits and losses equally. If an agreement exists, partners divide profits based on the terms specified. Any reason can be used as the basis for establishing a profit-sharing ratio, but the two main factors are responsibility and capital contributions. Additional capital contributed attracts a 5% interest in the absence of a partnership agreement
