Which combination of statements are false about partnership?(A) Interest on partner's loan is to be given @ 12% p.a. if the deed is silent about the rate.(B) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner.(C) Methods of settlement of dispute among the partners can't be part of the partnership deed.(D) Each partner carrying on the business is the principal as well as the agent for all the other partners.Choose the correct answer from the options given below:
- A(A), (B) and (D) only
- B(A), (B) and (C) only
- C(A), (B), (C) and (D)
- D(B), (C) and (D) only
Solution & Step-by-step Explanation
Let us evaluate each statement given under the provisions of the Indian Partnership Act, 1932:Statement (A): If the partnership deed is silent, interest on a partner's loan is provided at the rate of p.a., not p.a. Thus, this statement is False.Statement (B): If the partnership deed is silent, no interest is charged on the drawings made by the partners. Thus, this statement is False.Statement (C): The methods of settling disputes among partners can be and are typically an integral part of a partnership deed to avoid future litigation. Thus, this statement is False.Statement (D): The relationship between partners is based on the principle of mutual agency, where each partner is both a principal and an agent for all other partners. Thus, this statement is True.Since statements (A), (B), and (C) are false, the correct combination is (A), (B) and (C) only.