Practicing Success
In the absence of a partnership deed which of the following are correct. (A) Profit sharing ratio will be on the basis of capital contributed by the partners (B) No interest on capital will be provided (C) No interest on Drawing will be charged (D) 6% p.a. interest on partner's loan will be provided (E) Partner will get salary for extra time devoted for the firm Choose the correct answer from the options given below : |
(A), (B) and (C) only (A), (D) and (E) only (D) and (E) only (B), (C) and (D) only |
(B), (C) and (D) only |
The correct answer is option (4) : (B), (C) and (D) only. (A) Profit sharing ratio will be on the basis of capital contributed by the partners- False. Profit shared equally. (B) No interest on capital will be provided- true (C) No interest on Drawing will be charged-true (D) 6% p.a. interest on partner's loan will be provided-true (E) Partner will get salary for extra time devoted for the firm- false, no salary given.
If there is no clause in the partnership deed of the partnership firm then the provisions of the Partnership Act, 1932 will be applicable. Some of the provisions are: |