Select the correct options from the following in case there is no partnership deed:
(A) Profit and losses of the firm are shared equally.
(B) Interest on capital is to be paid at the rate of 6 percent per annum.
(C) Interest on the partner's loan is to be paid at the rate of 6 percent per annum.
(D) No interest is to be charged on the drawings made by the partners.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → A, C and D only
Where there is no partnership deed, or the deed is silent, the provisions of the Indian Partnership Act, 1932 apply.
(A) Profit and losses of the firm are shared equally. Correct. Profits and losses are shared equally, whatever capital each partner has put in.
(B) Interest on capital is to be paid at the rate of 6 percent per annum. Incorrect. No interest on capital is payable unless the partners have agreed to it. The 6% rate belongs to a partner’s loan, not to his capital.
(C) Interest on the partner’s loan is to be paid at the rate of 6 percent per annum. Correct. A partner who has lent money to the firm is entitled to interest at 6% p.a. on the loan.
(D) No interest is to be charged on the drawings made by the partners. Correct. Interest on drawings is charged only if the deed provides for it.
NCERT (2026-27 edition): |