In the absence of an agreement, the partners are entitled to :

Interest on Loans and advances to the firm

The correct answer is option 3- Interest on Loans and advances to the firm.

In the absence of an agreement, the partners are entitled to interest on Loans and advances to the firm.

If partnership deed is silent in respect of certain aspects, the relevant provisions of the Indian Partnership Act, 1932 become applicable. According to the Partnership Act, the partners share profits equally, no partner is entitled to remuneration, no interest on capital is allowed and no interest on drawings is charged. However, if any partner has given some loan to the firm, he is entitled to interest on such amount @ 6% per annum.