'X' and 'Y' are partners in a firm. State which of the following claims are invalid, if the partnership agreement and deed is silent on them:
A. 'Y' had advanced a loan to the firm. He/She claims interest @ 15% per annum
B. 'Y' wants interest on capital to be credited @ 12% per annum.
C. 'X' has contributed Rs. 80,000 and 'Y' Rs. 2,40,000 as capital. 'X' wants equal share in profits.
D. 'X' is an active and working partner. He/She wants a salary of Rs. 10,000 per year.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → A, B and D only
When the partnership deed is silent, the Indian Partnership Act, 1932 decides the matter. A claim is valid only if the Act allows it.
A. 'Y' had advanced a loan to the firm. He/She claims interest @ 15% per annum Incorrect. This claim is invalid. A partner's loan does earn interest, but only at 6% per annum, so Y can claim 6%, not 15%.
B. 'Y' wants interest on capital to be credited @ 12% per annum. Incorrect. This claim is invalid. No interest on capital is allowed unless the partners have agreed to it.
C. 'X' has contributed Rs. 80,000 and 'Y' Rs. 2,40,000 as capital. 'X' wants equal share in profits. Correct. This claim is valid. With no agreement, profits are shared equally, whatever the capital each partner put in, so X's smaller capital does not reduce his share.
D. 'X' is an active and working partner. He/She wants a salary of Rs. 10,000 per year. Incorrect. This claim is invalid. No partner gets a salary for working in the firm unless the deed provides for it, however active he is.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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