Match List – I with List – II. List - I List - II (A) Profit sharing… | Accountancy Part A CUET question

Match List – I with List – II.

List - I	List - II
(A) Profit sharing Ratio	(I) No payment
(B) Interest on partner's Loan	(II) With consent of all existing partners
(C) Admission of a Partner	(III) 6% p.a.
(D) Interest on Capital	(IV) Equal

Choose the correct answer from the options given below :

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → (A)-(IV), (B)-(III), (C)-(II), (D)-(I)

These are the rules of the Partnership Act that apply when the deed is silent:

(A) Profit sharing Ratio — this matches (IV) Equal. Profits and losses are shared equally, whatever the capitals.

(B) Interest on partner's Loan — this matches (III) 6% p.a. A partner’s loan to the firm earns interest at 6 per cent per annum.

(C) Admission of a Partner — this matches (II) With consent of all existing partners. A new partner can be admitted only if every existing partner agrees.

(D) Interest on Capital — this matches (I) No payment. No interest on capital is allowed unless the deed provides for it.

NCERT (2026-27 edition):
Provisions of Partnership Act Relevant for Accounting – “… (a) Profit Sharing Ratio: If the partnership deed is silent about the profit sharing ratio, the profits and losses of the firm are to be shared equally by partners, irrespective of their capital contribution in the firm.”

NCERT (2026-27 edition):
Provisions of Partnership Act Relevant for Accounting – “… (b) Interest on Capital: No partner is entitled to claim any interest on the amount of capital contributed by him in the firm as a matter of right. However, interest can be allowed when it is expressly agreed to by the partners. Thus, no interest on capital is payable if the partnership deed is silent on the issue.”

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.”