In the absence of partnership deed, the partners are entitled to receive ___________

Interest on Loan

The correct answer is option 2- Interest on Loan.

In the absence of partnership deed, the partners are entitled to receive Interest on Loan.

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.