Question

In the absence of a partnership deed, ______.

विकल्प

• Interest will not be charged on partner’s drawings

• Interest will be charged @ 5% p.a. on partner’s drawings

• Interest will be charged @ 6% p.a. on partner’s drawings

• Interest will be charged @ 12% p.a. on partner’s drawings

Answer 1

In the absence of a partnership deed, interest will not be charged on partner’s drawings.

Explanation:

According to the Indian Partnership Act, 1932, in the absence of a partnership deed, certain default rules apply. These include profits and losses are shared equally, no interest is allowed on capital, no salary/commission is given to partners, interest on a partner’s loan is allowed @ 6% p.a., and no interest being charged on drawings. Hence, the correct answer is that interest will not be charged on the partner’s drawings.