Question

Mention any four provisions of the Partnership Act in the absence of a Partnership Deed.

Answer 1

In the absence of a Partnership Deed, the provisions of the Indian Partnership Act, 1932, will apply.

Four important provisions are:

1. Profit Sharing: In the absence of an agreement, profits and losses will be shared equally among all partners, irrespective of their capital contributions.
2. Interest on Capital: No interest is payable on the capital contributed by the partners, unless explicitly agreed upon in the partnership deed.
3. Interest on Drawings: No interest is charged on the drawings made by partners unless agreed upon in the partnership deed.
4. Salary or Remuneration: No partner is entitled to any salary or remuneration for their services, unless there is an agreement stating otherwise.