Choose the correct statement if a partnership deed is not present.

The correct answer is Option (4) → Partners shall share the profit and losses equally

Where there is no partnership deed, or the deed is silent, the Indian Partnership Act, 1932 fills the gap. Its rules are the plain defaults: profits and losses are shared equally, and nothing extra is given or charged unless the partners have agreed to it.

Option (1) Interest on Capital are allowed — Incorrect. Without an agreement no interest on capital is paid.

Option (2) Interest on partner drawing is charged — Incorrect. No interest is charged on drawings unless the deed provides for it.

Option (3) Remuneration or salary is given to partners — Incorrect. A partner is not entitled to salary for working in the business unless the deed says so.