Which combination of statements is true about partnership?

(A) Valid partnership can be formulated even without a written agreement between the partners.

(B) Methods of settlement of disputes among the partners can't be part of the partnership deed.

(C) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner.

(D) Each partner carrying on the business is the principal as well as the agent for all the other partners.

Choose the correct answer from the options given below:

(A) and (D) only

The correct answer is option 1- (A) and (D) only.

(A) Valid partnership can be formulated even without a written agreement between the partners.  IT IS TRUE. Partnership is the result of an agreement between two or more persons to do business and share its profits and losses. The agreement becomes the basis of relationship between the partners. It is not necessary that such agreement is in written form. An oral agreement is equally valid. But in order to avoid disputes, it is preferred that the partners have a written agreement

(B) Methods of settlement of disputes among the partners can't be part of the partnership deed. IT IS NOT TRUE as it can be part of deed. The Partnership Deed usually contains the following details: Rules to be followed in case of admission, retirement, death of a partner; Any other matter relating to the conduct of business. Treatment of loss arising out of insolvency of one or more partners; Settlement of accounts on dissolution of the firm; Method of settlement of disputes among the partners.

(C) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner.  IT IS NOT TRUE as no interest is charged from partners in absence of any agreement. If the partnership deed does not mention anything about charging interest on drawings made by partners, no interest will be levied on such withdrawals. 

(D) Each partner carrying on the business is the principal as well as the agent for all the other partners. IT IS TRUE. The business of a partnership concern may be carried on by all the partners or any of them acting for all. This statement has two important implications. First, every partner is entitled to participate in the conduct of the affairs of its business. Second, that there exists a relationship of mutual agency between all the partners. Each partner carrying on the business is the principal as well as the agent for all the other partners. He can bind other partners by his acts and also is bound by the acts of other partners with regard to business of the firm. Relationship of mutual agency is so important that one can say that there would be no partnership, if the element of mutual agency is absent.

THUS, A & D IS TRUE.