HomeTestsSearchRankProfile
mediumMCQCUET Accountancy 2023 29 May Shift 22026Accountancy
1 mark

In which of the following cases is the claim legally valid if the partnership agreement/deed is completely silent?

  1. A
    Sanjay is an active partner and wants a salary of per year.
  2. B
    Monika had advanced a loan to the firm and claims interest per annum.
  3. C
    Sanjay and Monika contributed and as capital respectively and Monika wants equal profit share.
  4. D
    Monika wants interest on capital to be credited per annum.

Solution & Step-by-step Explanation

According to the provisions of the Indian Partnership Act, 1932, when the partnership deed is silent:No partner is entitled to any salary or remuneration.Interest on a partner's loan is allowed strictly at a fixed rate of p.a. (making option B invalid).No interest on capital is allowed to any partner.Profits and losses must be shared equally among all partners, regardless of their individual capital contributions.Therefore, Monika's claim for an equal profit share despite unequal capital contribution is fully valid.

Practice this question

Try it yourself before checking the explanation above.

In which of the following cases is the claim legally valid if the partnership agreement/deed is completely silent?
A
Sanjay is an active partner and wants a salary of per year.
B
Monika had advanced a loan to the firm and claims interest per annum.
C
Sanjay and Monika contributed and as capital respectively and Monika wants equal profit share.
D
Monika wants interest on capital to be credited per annum.

Share This Question

Related Questions

Ready for a Full Test?

Practice with timed mock tests and track your performance across Accountancy.

Discussion