Question

When there is no partnership deed, the partners are entitled to which of the following?

Options

• Salary

• Profit share in capital ratio

• Interest on loans and advances

• Commission

Answer 1

Interest on loans and advances

Explanation:

Salaries, profit-sharing ratios, commissions, and so on are determined by the partnership deed; however, if there is no partnership document, the partner is responsible for paying the interest on the loan he took out at 6%.