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 :
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (B), (C) and (D) only
When there is no partnership deed, the Indian Partnership Act, 1932 decides these matters.
(A) Profit sharing ratio will be on the basis of capital contributed by the partners — False. Partners share profits equally, whatever their capitals.
(B) No interest on capital will be provided — True. The Act allows no interest on capital.
(C) No interest on Drawing will be charged — True. The Act charges no interest on drawings.
(D) 6% p.a. interest on partner’s loan will be provided — True. A loan by a partner earns interest at 6% per annum.
(E) Partner will get salary for extra time devoted for the firm — False. No partner is entitled to any remuneration.
NCERT (2026-27 edition):
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