Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:
When does the provision of the Indian Partnership Act,1932 come into action in a partnership firm?
Options:
When interest is charged on partners drawings
When the capital invested by the partners is unequal
When there is a conflict of interest and opinions in a firm
When the partnership deed is silent
Correct Answer:
When the partnership deed is silent
Explanation:
The Indian Partnership Act,1932 comes into action when there is the absence of a partnership deed in the firm.