Which of the following statements are correct about partnership? (A)…

The correct answer is Option (4) → (A) and (C) only

Where the deed is silent, the Partnership Act fills the gaps. The question is whether each statement reflects the Act.

(A) Each partner carrying on the business is the principal as well as the agent for all the other partners Correct. This is mutual agency: a partner binds the others by his acts and is bound by theirs.

(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. If the deed says nothing, no interest is charged on drawings; 6% is the rate for a partner’s loan.

(C) 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 Correct. Without an agreed ratio, profits and losses are shared equally, irrespective of capital.

(D) Interest on partner’s loan is to be given @ 12% p.a., if the deed is silent about the rate Incorrect. The Act allows interest on a partner’s loan at 6% p.a., not 12%.