Question

When is the Partnership Act enforced?

Options

• When there is no partnership deed.

• Where there is a partnership deed but there are differences of opinion between the partners.

• When the capital contribution by the partners varies.

• When the partner’s salary and interest on capital are not incorporated in the partnership deed.

Answer 1

When there is no partnership deed.

Explanation:

According to the Indian Partnership Act, 1932, in the absence of a partnership deed, the rules of the Act apply. This includes equal sharing of profits and losses, no interest on capital or drawings, and no partner salary unless otherwise agreed upon.