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Home Questions T5B55JF6V8
Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:

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

 

Options:

A-IV, B-I, C-III, D-II

A-III, B-IV, C-II, D-I

A-IV, B-III, C-II, D-I

A-III, B-II, C-IV, D-I

Correct Answer:

A-III, B-II, C-IV, D-I

Explanation:

* 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.

* Interest on drawings- No interest is to be charged on the drawings made by the partners, if there is no mention in the Deed. 

* Salary- 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.

* 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.

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