Mohan and Shyam are partners in a firm. Which statement among the below can be claimed valid if the Partnership Agreement is silent regarding the same?
- AMohan is an active partner. He wants a salary of Rs. 10,000 per year.
- BShyam had advanced a loan to the firm. He claims interest of @ 10% per annum.
- CMohan contributed Rs. 20,000 and Shyam Rs. 50,000 as capital. Mohan wants an equal share in profits.
- DShyam wants interest on capital to be credited @ 6% per annum.
Solution & Step-by-step Explanation
In the absence of a partnership deed or agreement, the provisions of the Indian Partnership Act, 1932 apply:Profits and losses must be shared equally among all partners, regardless of their capital contributions. Thus, Mohan's claim for an equal share is valid.No partner is entitled to any salary or remuneration.Interest on a partner's loan is allowed at a fixed rate of p.a., not p.a.No interest on capital is allowed to any partner.