Which combination of statements are false about partnership-
(A) Interest on partner's loan is to be given @ 12% p.a., if the deed is silent about the rate.
(B) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner.
(C) Methods of settlement of dispute among the partners can't be part of the partnership deed.
(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:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (B) and (C) only
Where the partnership deed is silent, the Indian Partnership Act, 1932 decides interest on loans and drawings; the deed itself may cover any matter the partners agree on.
(A) Interest on partner's loan is to be given @ 12% p.a., if the deed is silent about the rate. Incorrect. If the deed is silent, a partner's loan carries interest at 6% p.a., not 12%.
(B) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner. Incorrect. When the deed says nothing, no interest is charged on drawings at all.
(C) Methods of settlement of dispute among the partners can't be part of the partnership deed. Incorrect. The deed usually lays down the method of settling disputes among partners; it is one of its normal contents.
(D) Each partner carrying on the business is the principal as well as the agent for all the other partners Correct. This is mutual agency: each partner binds the others by his acts and is bound by theirs.
NCERT (2026-27 edition):
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