Which of the following statements are correct about a partnership?(A) Each partner carrying on the business is the principal as well as the agent for all the other partners.(B) If the deed is silent, interest at the rate of would be charged on the drawings made by the partner.(C) If the partnership deed is silent about the profit sharing ratio, the profits and losses of the firm are to be shared equally by partners.(D) Interest on partner's loan is to be given @ , if the deed is silent about the rate.Choose the correct answer from the options given below:
- A(B) and (D) only
- B(A), (B) and (D) only
- C(C) and (D) only
- D(A) and (C) only
Solution & Step-by-step Explanation
Let us check the validity of each statement against the Indian Partnership Act, 1932:Statement A (Correct): Explains the foundational doctrine of Mutual Agency. A partner acts both as an agent (binding others by their actions) and a principal (bound by others' actions).Statement B (Incorrect): If the deed is silent, no interest is charged on drawings.Statement C (Correct): In the absence of an agreement, profits and losses must be divided equally among partners.Statement D (Incorrect): If the deed is silent regarding loan interest terms, interest on a partner's loan is given at , not Thus, only statements (A) and (C) are correct.