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easyMCQCUET Accountancy 2025 22 May Shift 12026Accountancy
1 mark

Choose the correct statement if a partnership deed does not exist.

  1. A
    Interest on Capital are allowed.
  2. B
    Interest on partner drawing is charged.
  3. C
    Remuneration or salary is given to partners.
  4. D
    Partners shall share the profit and losses equally.

Solution & Step-by-step Explanation

In accordance with the Indian Partnership Act, 1932, when a written or explicit partnership deed does not exist, profits and losses must be distributed equally among all partners, regardless of individual capital contributions. No salary, interest on capital, or interest on drawings is allowed or charged.

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Choose the correct statement if a partnership deed does not exist.
A
Interest on Capital are allowed.
B
Interest on partner drawing is charged.
C
Remuneration or salary is given to partners.
D
Partners shall share the profit and losses equally.

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PartnershipAccountingAbsence of Deed

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