Match List-I with List-II. If the partnership deed is silent regardin…

Match List-I with List-II.

If the partnership deed is silent regarding the items provided in List-l

List-I	List-II
(A) Interest on Capital	(I) to be shared equally
(B) Interest on Loan	(II) not charged
(C) Interest on Drawings	(III) not payable
(D) Sharing of Profits	(IV) @6% p.a.

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → (A) - (III), (B) - (IV), (C) - (II), (D) - (I)

When the partnership deed says nothing on a point, the Indian Partnership Act, 1932 fills the gap. Its rules favour equality among partners and give nothing extra to anyone, except a fair return on money a partner lends to the firm.

(A) Interest on Capital — this matches (III) not payable. Capital is the partner’s own stake, so no interest is allowed on it unless the deed provides for it.

(B) Interest on Loan — this matches (IV) @6% p.a. A loan is money lent over and above capital, so the partner gets interest at 6% per annum even when the deed is silent.

(C) Interest on Drawings — this matches (II) not charged. With no agreement, no interest is charged on what partners withdraw.

(D) Sharing of Profits — this matches (I) to be shared equally. Profits and losses are shared equally, whatever the capital each partner has put in.

NCERT (2026-27 edition):
Terms Introduced in the Chapter – “… 3. Provisions of Partnership Act 1932 applicable to accounting: 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.”