Consider the below given statements related to the partnership and se…

Consider the below given statements related to the partnership and select the correct statements:

(A) Partners may contribute capital in proportion to profit-sharing ratio.

(B) Partners must not get any interest on the loan provided by him to the firm in the absence of the partnership deed.

(D) Partners must contribute capital only in cash.

Choose the correct combination of statements from the options given below:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → (A) and (C) only

The statements test what the partners may agree among themselves and what the Partnership Act lays down when the deed is silent.

(A) Partners may contribute capital in proportion to profit-sharing ratio. Correct. The partnership deed decides how much capital each partner brings; a proportion to the profit ratio is a common choice, though not a requirement.

(B) Partners must not get any interest on the loan provided by him to the firm in the absence of the partnership deed. Incorrect. A partner who lends to the firm is entitled to interest at 6% per annum on the loan even when there is no deed.

(C) A partner cannot transfer his share without consent of other partners. Correct. A partnership rests on the partners’ mutual trust, so no partner can bring in an outsider by transferring his share without the consent of the others.

(D) Partners must contribute capital only in cash. Incorrect. Capital can be brought in as cash or as assets, at the value the partners agree.

NCERT (2026-27 edition):
Adjustment of Capitals – “Sometimes, at the time of admission, the partners agree that their capitals should also be adjusted so as to be proportionate to their profit sharing ratio.”

NCERT (2026-27 edition):
Provisions of Partnership Act Relevant for Accounting – “… (d) Interest on Loan: If any partner has advanced loan to the firm for the purpose of business, he/she shall be entitled to get an interest on the loan amount at the rate of 6 per cent per annum.”

NCERT (2026-27 edition):
Admission of a New Partner – “… According to the Partnership Act 1932, a new partner can be admitted into the firm only with the consent of all the existing partners unless otherwise agreed upon. With the admission of a new partner, the partnership firm is reconstituted and a new agreement is entered into to carry on the business of the firm.”

NCERT (2026-27 edition):
Admission of a New Partner – “… For the right to acquire share in the assets and profits of the partnership firm, the partner brings an agreed amount of capital either in cash or in kind.”