Match List I with List II in context of not having partnership deed.…

Match List I with List II in context of not having partnership deed.

LIST I	LIST II
A) Interest on loan	I) Equal
B) Interest on drawings	II) Will not be charged
C) Salary	III) @ 6 %p.a.
D) Profit-sharing ratio	IV) Will not be allowed/provided

Answer & explanation

Correct answer: option 4

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

Where there is no partnership deed, the Indian Partnership Act, 1932 applies:

(A) Interest on loan — this matches (III) @ 6% p.a. A partner’s loan to the firm earns interest at 6% p.a.

(B) Interest on drawings — this matches (II) Will not be charged. No interest is charged on drawings unless the deed provides for it.

(C) Salary — this matches (IV) Will not be allowed/provided. No partner gets a salary for working in the firm.

(D) Profit-sharing ratio — this matches (I) Equal. Profits and losses are shared equally, whatever the capitals.

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 – “… (c) Interest on Drawings: No interest is to be charged on the drawings made by the partners, if there is no mention in the Deed.”

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. (e) Remuneration for Firm’s Work: No partner is entitled to get salary or other remuneration for taking part in the conduct of the business of the firm unless there is a provision for the same in the Partnership Deed.”